Case Study

Food Manufacturer

Vertically Integrated Value-Added Manufacturer of Food Products and Ingredients

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Initial Landscape

Founded ~15 years ago to deliver value-added co-manufacturing services

FP&A processes were unsophisticated and not supported within the ERP system

Controls cost by utilizing underserved products, combining customer services with affinity among growers and suppliers

Founding partners run the business as co-CEOs with no formal governance system

Approach

Commercial Reorientation

Pivoted to high margin, sticky relationships in direct-to-CPG rebrand & strategy.

Reporting & FP&A

CRM and Sage ERP implemented to handle all reporting, analysis, and budgeting processes.

Re-Organization

Scoped and hired new C-suite professionals to manage the business during and after a transaction.

Outcomes

  • Client experienced a +$7M EBITDA impact, driven by gross margin expansion (34.2% >> 40.7%)
  • New Bank relationship resulted in lower cost of capital and additional borrowing base better for working capital
  • Identified highest margin products and created sales growth strategies and KPIs for sales team
  • Added new ingredient line through bolt-on acquisition, resulting in immediate revenue and EBITDA impact
  • After a failed transaction at $80M enterprise value (“EV”), LVP engaged and drove to an EV of $200M (IB estimated value)

Takeaways

01

Engaged with the business in Q3-2024, identified key focus areas, and made an immediate impact on the client’s financial performance

02

Significant management, structural, and process implementation within 60 days of LVP kickoff

03

Created initial due diligence plan, including data room creation, management interviews, and prospective buyer list

04

Client will go-to-market, led in partnership with LVP and IB firm in Q3-2025 as a platform business targeting strategic buyers

05

Sell side advisor, who previously took company to market, estimated the client will achieve a higher multiple with larger EBITDA than previous transaction, with smoother diligence period

Optimization Team

John Pappanastos

Managing Partner
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Lynn Ducharme

Partner
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Shields Legal Group

Governance and Legal
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