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

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