NATURE OF ASSIGNMENT:
Primary: Lender Services / Financial & Operational Restructuring
Primary Industry: Dairy Operations
Focus Scope: Focus was hired by the Lender of a large, multi-location, privately-owned dairy operation to review the Company’s financial and cash flow forecasts and to suggest possible restructuring alternatives and forbearance strategies.
Tasks Performed:
- Reviewed Company’s financial forecast and cash flows
- Conducted an analysis of historic financial information by dairy operation
- Developed a comprehensive list of forbearance terms, conditions and covenants to be considered by the lender in developing a forbearance strategy
- Developed suggestions for hedging opportunities related to feed and milk
- Reviewed over advance requests to facilitate reduced over advance requirements
- Identified opportunities to reduce cash flow needs during the next year
- Developed weekly and monthly monitoring practices for the benefit of the Lender
- Implemented a weekly reporting mechanism that included borrowing base forecasting, working capital forecasting and other additional important items.
Results: Focus Professionals successfully applied the Focus Dairy the Operating Success Matrix©, an FMG proprietary matrix that shows a Lender the combinations of variables which would result in success for a specific borrower, to determine the combination of feed costs, milk prices, and milk production which provided the borrower with opportunities to reduce debt.