Food Manufacturer and a New Facility

CEO asked Elliott Davis to help answer: “Amidst all the noise, what are the few options I have to choose from? I want to make a data-driven decision. Which investment option will yield the best long-term return, and how can I effectively present this to capital partners?”

Context

Customer with strong market position in the food industry, resulting in steady year-over-year EBITDA growth. The customer’s primary manufacturing site needed a major overhaul and would eventually have a negative impact on profitability. With high stakes, lack of internal consensus, and multiple options for consideration, the CEO requested help in making a data-driven decision for the best long-term return.

Our Approach

We broke the questions into two phases:

(1) Baseline 5-yr financial forecasts - bringing leadership into shared understanding:

• Interviews with internal leaders, SMEs, and engineers to align on the assumptions
• Expert interviews that captured the future commodity market outlook
• 5-yr baseline financial projections

(2) Strategic opportunity valuation and capital raise:

• Identification and articulation of mutually exclusive strategic options (e.g. plant investment, product mix, customers)
• Projected financial impact vs. baseline
• Supported CEO in creation and delivery of pitch proposals to capital partners

Customer Results

• Delivered strategic options with clear assumptions for the CEO, fully supported with financial forecasts to compare versus baseline plan.
• Analyzed financials for new facility, demonstrating potential for ~$20M increase in EBITDA performance over next four years.
• Assisted the CEO in developing presentations to support meetings with multiple capital partners.

We Can Help

For more information on this and other topics, contact a member of our team.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.