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Precision Critical Aerospace Component Manufacturer – Restructuring & Refinance Case Study

Mar 16, 2022 | Case Studies, Industrials Manufacturing, Industry Industrials Manufacturing, Transaction Financings and Recapitalizations, Transaction Restructuring, Transactions

Our Client

A manufacturer of precision Critical Aerospace Components working to recover after the founder’s extended absence.

The Situation

Our client had almost a decade of profitable growth, thanks to a customer-centric culture and a smart focus on specific markets. However, after the founder stepped down from day-to-day administration and a new leader took over, the business’s direction shifted to a more command-and-control style of leadership, along with a new strategy geared toward fresh markets.

Unfortunately, this didn’t go according to plan, and the company alienated its existing client base while experiencing a significant drop in demand due to COVID-19. Even with market recovery, the losses kept accruing and COVID-19 PPP support failed to cover operating losses. The company’s senior lender gave the founder an ultimatum: fix or refinance within six months.

The Solution

The company’s founder brought in our Restructuring Team to turn around performance. The goal was to not only find potential sale options but also to improve and refinance the company’s operations.

Cascade Partners’ (BlueWater Partners) Finance Team was quick to implement a 13-week cash flow and restructure reporting processes. These changes were executed in less than 30 days. The team then developed a detailed recovery plan, that included restructuring the leadership team, and would return the business to profitability in just 90 days.

Collaborating with the founder, the team initiated some significant leadership changes, including restructuring key management roles and terminating the General Manager (GM). They also helped the founder return to a proven go-to-market strategy.

Our Lean Operations Team addressed manufacturing bottlenecks and implemented a management operating system.

We then introduced the founder to carefully selected peer firms with the potential to become investors, mentors, and customers to help grow the business further.

Our fast and collaborative approach helped the client company generated interest from multiple financing sources and pursued additional government funds to bolster liquidity.

The Cascade Advantage

Thanks to our Restructuring Team’s efforts, the client company returned to operating profit just 60 days after replacing their GM. Not only that, but we also supported the founder’s desire to return and lead daily operations, confirmed that refinancing was the best option, and helped the company maximize their ERTC and EIDL funds. Through our team’s guidance, the company was able to successfully refinance within the senior lender’s timeline and secure new facilities that provided ample funds for both working capital growth and capital investment.

Update: BlueWater Partners has joined Cascade Partners. Read more here.