CoMetrics Capital Advisory

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Client Profile
Manufacturer of commercial back-room products for the retail, restaurant and hospitality industries.

Revenue
$40MM

Situation
Company had three consecutive years of losses as a result of unsuccessful acquisition. The client’s existing lender requested that they work to find a new lender. The company’s supply chain operations were using outdated processes resulting in a higher cost structure than necessary.

Solution
CoMetrics worked with management and ownership to construct revised cashflow, inventory projections, overhead and borrowing-based projections. The supply chain process was redesigned, resulting in an annual savings of approximately $250K annually. A financing memorandum was written and presented to several lenders, resulting in a new $8MM ABL facility.

Lender Advisory Case Study

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Client Profile
Middle market furniture importer and distributor

Facility
$25 million asset-based facility

Engagement parameters
Projected four-day collateral field examination

Situation
CoMetrics partners (CMP) was engaged by a money center bank to provide a collateral field exam. During the course of the examination, CMP conducted several tests that revealed that the company was out of formula and in an underlying over-advance condition. Subsequently, further examination revealed that there were assets on the borrowing base that were not true assets of the company, which resulted in an over advance. At this point of the examination, CMP alerted the lender of a possible fraudulent transaction.  As a result of the findings, the lender requested CMP to extend the collateral field examination to include quality of earnings testing, which over a two-month period, validated the fraudulent transaction.