Restructuring & Refinance: Critical Aerospace Component Manufacturer
Client
A precision Critical Aerospace Component manufacturer recovers from the founder’s extended absence.
Situation
- Company achieves nearly 10-year track record of profitable growth by building a customer-focused culture and targeting specific markets
- Founder exits day-to-day operations; appointed leader pursues new markets, shifts to command-and-control leadership
- New strategy fails to gain traction with target markets and alienates existing client base; losses accelerate with brief COVID-19 induced drop in demand, continue despite market recovery
- COVID-19 PPP support fails to cover operating losses
- Senior lender asks founder to fix or refinance within 6 months
Solution
- Founder engaged BlueWater Partners (BWP) to turn around performance while pursuing both sale and fix/refinance options
- BWP’s finance team implemented 13-week cash flow, restructured reporting processes in less than 30 days
- Concluded business could return to profitability in 90 days by restructuring leadership team; developed a detailed recovery plan
- Collaborated with founder to terminate GM, restructure key management roles and return to proven go-to-market strategy
- Lean Operations Team addressed manufacturing bottlenecks, implemented management operating system
- Introduced founder to carefully selected peer firms with potential to become investors, mentors, or customers
- Generated interest from multiple financing sources, pursued additional government funds to bolster liquidity
Results
- Returned to operating profit within 60 days of replacing GM
- Supported founder’s desire to return and lead daily operations
- Confirmed refinancing best option; maximized ERTC, EIDL funds
- Successfully refinanced within senior lender timeline; new facilities provided ample funds for working capital growth and capital investment
