Welcome to the September issue of ACM Capital Partners’ Value Line newsletter. In this issue, you will read about three new engagements – an ammunition company in the Northwest, a logistics company in the Midwest and a distributor in Pennsylvania.
ACM ENGAGED BY AN AMMUNITION COMPANY IN BIG SKY COUNTRY
The firm has been retained by an ammunition company in the Northwest to assist with inventory control and other financial related matters. The company is owned by a private equity client of the firm. We have been engaged to assist with streamlining the inventory purchasing, work in process and distribution to retailers. “This assignment was a natural for fit for our firm, as our professional assigned to the task has relevant experience in this industry and was able to step right in,” said Jim Martin, Managing Partner of ACM.
Completing preliminary work onsite, we are now utilizing our broad network of internal and external resources to assist selling the slow moving and excess inventory and convert it to cash. This is an important step, as our client had built up the inventory over the last 18 months to unusually high levels. “We know several players in this space and are quite confident that we will be able to move a substantial amount of the inventory,” said Kevin Henry, Director of ACM.
ACM ENGAGED BY A LOGISTICS COMPANY IN THE MIDWEST
ACM has been hired by a logistics company in the Midwest to assist with financial analysis and CRO related work.
The company delivers critical documents for commercial clients and several state and Federal governments. Given today’s technological advances, critical document delivery demand has dropped precipitously. One of the key challenges is to adjust the fixed costs and overhead downward in order to properly match the lower sales volume today and into 2014. Exacerbating the problem is the level of fixed assets and real estate that exists today on the company’s balance sheet.
“Given our experience in this industry, we are well positioned to assist the client sell the non-core assets in an expeditious fashion,” said Jim Martin. “While the company explores other options, we will work behind the scenes to ensure that we move the assets in quick order. Again, this is the beauty of having the network we enjoy in the transportation and aviation sectors.”
ACM HIRED TO ASSIST LENDER IN PENNSYLVANIA
ACM has been retained by one of our debt fund clients to assist with a borrower in Pennsylvania. This distribution business has not performed well over the previous few years and our client was not provided financial information on a timely basis. We initially came in for a week long assessment and provided our client with a view of the company’s performance. Similar to other work we have done for this client, the report prompted the need to insert a professional on site to work with the management team. Our work has led to more timely information to the lender and a greater degree of transparency for our client. “Our approach trumps that of the traditional bank auditor or even a CPA firm’s audit team,” said Jim Martin. “Our professionals are trained to step in on day one without a script or checklist and urgently drive to the core issues. Our value-add in these cases cannot be overemphasized.”
