A large West Coast marine construction company with synergistic and interlocking businesses chose PMCG to design and support the implementation of a re-engineering of its capital structure. The recapitalization included a $22 million refunding of existing term debt and redemption of preferred stock. Working closely with the CEO, financial management and the company's existing banks, PMCG created the structure, plan, forecasts, presentations and supporting analysis that was presented to and approved by the client's Board of Directors and bonding company. Solicitations of interest and circulation of the client's offering memorandum began just before year-end. At year-end PMCG also placed a “bridging” loan for $3.3 million to fund a maturing facility until the main financing closed. In less than 45 days after solicitation began, offers were received for the full $22.0 million.
Blood is Thicker Than Water - If the Process Supports It: Strategic Planning and Generational Transition
A large family farm with $8.0 million in annual revenues was in the process of handing over control to its third generation. The owners selected a PMCG Principal to be its transition advisor. Ownership was divided between family members some of who were not involved in the operations but whom were represented on the company's Board of Directors. Widespread dissatisfaction with business decisions, operating performance, a weakening financial condition and the owner's divergent financial objectives all contributed to threaten an otherwise sound operation. After meeting individually with each board member and shareholder and conducting a thorough analysis of operations, the PMCG Principal implemented a process through which the shareholders and directors identified, prioritized and aligned business decision making processes and ownership objectives. The shareholders and directors were carefully guided through an 8-month development plan that resulted in a strategic planning and decision-making process, which established a formal structure for reviewing and prioritizing options and evaluating results. All internal conflicts were resolved within 6 months and the process introduced by PMCG significantly improved operating performance, cash flow and financial condition in the first year.
Going on the Wagon: Bankruptcy and Committee Advisors
The Unsecured Creditors Committee of a vertically integrated vineyard and grape processing operation with $45.0 million in annual revenues chose PMCG as their operational and financial advisor. The bankruptcy consisted of grape production on 15,000 acres of owned and leased property. The vineyards consisted of multiple wine grape varieties grown in the Central Valley and Central Coast of California. The processing facilities consisted of a winery and concentrate plant with a combined capacity of 9.0 million gallons. PMCG's vineyard, agricultural and manufacturing expertise allowed us to quickly and accurately evaluate each of the debtor's businesses and identify non-producing and/or high risk vineyards and manufacturing activities. The PMCG information was so focused and reliable that it was used by the debtor, the debtor's principal secured creditors and during negotiations. PMCG's advice and insights were instrumental in strengthening the position the Committee.
