Phoenix serves as financial advisor to a family-owned printer/fulfillment service provider and successfully sells the company.
Phoenix’s client was a $40 mm family-owned and operated Printer/Fulfillment Services Provider to the direct mail industry.
The Company was in a tough situation – an over-leveraged position with its lender, a stale operating business style, mature management, and the loss of two key executives who started up a direct competitor. There had been consistent trailing twelve-month losses and EBITDA declines, with no discernible reduction in operating and fixed expenses. The Company’s management was extremely mature, with no definable exit strategy in place. Further, the Company’s lender had shifted from “concerned” to “tired” with regard to the Company’s performance and lack of defined recovery and/or exit plan. The company needed outside help to bring order to chaos.
Initially, Phoenix was engaged to assist the Company with its operating performance, cash forecasting, and bank and vendor communications with the overall intent of stabilizing the business. Phoenix provided order to chaos within the various business areas, making tangible operating changes and restructuring its activities to significantly improve day-to-day operations. The Company’s cash position also improved but, with a significantly overleveraged balance sheet, cash continued to be strained due to existing debt service requirements. The aging state of the Company’s management, the lack of a succession plan, and the strained cash position led to a decision to sell the Company.
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