Sun Capital

Sun Capital Partners is a +$7 billion private equity group (PEG) investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that are distressed and can benefit from Sun’s in-house operating professionals and their experience. The SCA expert was able to stabilize six companies and create sustainable strategies for each of them for Sun.

CASE DESCRIPTION

The company is uniquely positioned to pursue leveraged buyouts and make investments in underperformers, turnarounds and special situations.
In this particular case, they approached a partner of the SCA Group to help them in undertaking a significant turnaround project involving six different companies, each in varying stages of distress. The six companies ranged from a provider of electronic storage consulting and integration to a developer and distributor of beauty projects to an international distributor and industrial extruder. Sun wanted to ensure that the complex projects were well managed.

The SCA expert found many challenges, including but not limited to:

  • Each of the six separate companies faced its own different set of challenges. No two were alike in industry, operations or types of financial/operational difficulties faced.
  • Each of the six companies had substantial amounts of revenue, ranging from $34 Million-$700 Million, and therefore required perceptive expertise in financial and operational matters of all kinds.
  • Each of the six companies was located in a different part of the world, including Poland, England, South Africa, China, Mexico and the U.S. Working directly with the companies, and getting real face-to-face time, would require a well-organized schedule, as well as forward thinking and planning—and a lot of travel.

Because the specific challenges unique to each company were so diverse in both industry and value, The SCA expert had to be flexible yet focused. He found that through well-organized and thorough research, intuitive analysis, and innovative planning, the six-part project could be managed with fluid precision, thereby ensuring a successful investment in Sun’s overall financial future.
Of the many efficient and economical practices used to make the project a success, some included:

  • Developing cost-effective restructuring plans
  • Building superior management teams for long-term growth
  • Overseeing debt reduction and material profitability improvements for financial health
  • Cash forecasts and creditor negotiations to restructure finances
  • Performing comparable company analyses, as well as many other analysis reports, to get a full financial picture of the six different companies
  • Worked with each of the CEO’s, COO’s and CFO’s of each company, developing strategies for sustainable and successful growth
  • In some cases, helped them in preventing company collapse
  • Fired and hired CEO’s and CFO’s in some of the companies, thereby increasing the talent of each of the companies
  • And implemented many operational efficiencies in each of the diverse companies

The SCA partner was able to stabilize the six companies, develop expansion and growth plans for each, create competent, sustainable and effective new teams across the board, acquire modern effective machinery and systems resulting in greatly reduced old debts and renegotiated funds, plus attract new customers, and implement innovative cash strategies to help each of the acquisitions in sustainable and successful growth.

Case Details

Company:

Sun Capital Partners


Industry:

Private Equity Group


Loan Type:

Assest Based


Amount:


Term: