Corporate Restructuring: Distribution

The Client:
At the time, the largest independent distributor of janitorial and sanitary products nationwide, with sales totaling $320 million had intended to be the industry consolidator, having acquired forty-two companies over a four year period.

The Problem:
The financial benefits of a consolidated operation had failed to materialize and bank covenants were at risk. The company’s plan for consolidating business functions; the eight technology platforms and the diverse inventory did not meet investor or lender expectations. Management sought assistance to improve and complete the planning process and financial projections.

The Need:
A third party opinion was required to validate the company’s consolidation plan and provide guidance as necessary if consolidation benefits were to be derived timely.

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