Site Selection, Economic Incentives, Logistics Strategy & Business Continuity Planning
- Disciplines Involved: Site Selection, Economic Incentives Services and Owner’s Agent Services
- Issue: A global leader in the manufacture of specialty packaging materials experienced substantial growth and engaged our professionals to lead the site selection and incentive negotiation process for a new facility.
- Our Work: Our team worked with the Company to identify the key economic and non-economic drivers for their business and for selecting a new facility and jointly created a weighted scorecard for assessing candidate communities and specific locations consistent with the company’s goals and objectives and the key drivers for their business. In fairly short order we narrowed the site selection search to 10 primary communities across four Midwestern states. Working with the company’s staff, state and local economic development agencies and with select property companies, architects and engineers, our team was able to create a short list of communities and properties for more detailed assessment. Our team helped the company with the negotiation and acquisition of the selected property, the zoning and permitted land use process and the negotiation and securing of state and local economic incentives.
- Outcome: We secured over $9 million in state and local incentives for the company and helped find the best location for its needs. The company then retained us for revamping its logistics strategy and enhancing its business continuity strategy and plans.
Site Selection, Economic Incentives Services and Owner’s Agent Services
- Disciplines Involved: Site Selection, Economic Incentives Services and Owner’s Agent Services
- Issue: A leading Midwest-based food processing company was outgrowing its existing facilities and wanted to consolidate its operations into a new facility.
- Our Work: Using the company’s goals and key business drivers, we quickly narrowed the search area to a handful of communities in two states. We then examined the available properties to determine the one that would best accommodate the CEO’s vision for his company. Using our deterministic modeling, we identified over 10 properties that would fit the relocation and assessed them against the key decision criteria. Simultaneously, we identified the various forms of economic incentives available at the state, county and municipal level and began negotiations with the various economic development agencies on the types and amount of incentive to be committed to the project. The incentive information was then factored into the deterministic model to provide the client with an equivocated per-square-foot number for each site. This analysis became the driving factor behind the ultimate site selection decision. We then led the negotiations with private lending sources to finalize the components of the capital stack.
- Outcome: Through our work, our client was able to select the best location for its needs on the most favorable terms available with a very attractive economic incentive package of state and local incentives.
Corporate Development, Business & Regulatory Strategy, Due Diligence & Integration Services
- Disciplines Involved: Corporate Development, Business & Regulatory Strategy, Due Diligence & Integration Services
- Issue: One of the nation’s largest healthcare specialty practices received an unsolicited offer from a private equity firm to purchase a substantial interest in its business.
- Our Work: The County retained our team to prepare the eligibility report and redevelopment plan that addressed a number of obstacles and needs within the Redevelopment Project Area. This project required our team to work in conjunction with area legislators to draft language and amend the Industrial Jobs Recovery Law (IJRL) to allow the two villages to form the district. Additionally, our team assisted the County in forming a water district within the IJRL Redevelopment Project Area to provide municipal potable water service and support for fire suppression systems. As part of this scope of services, we also assisted the County in setting up a Special Service Area (SSA) District within the IJRL boundaries to finance the water system construction.
- Outcome: Through the course of our work with the client, we determined that the transaction could not be consummated on terms that would protect the interests and objectives of our client, notably valuation and operational autonomy. As a result of this determination, our client is now pursuing other strategic options.
- Disciplines Involved: Site Relocation
- Issue: A tripartite business entity consisting of a medical software development unit, a medical billing services unit and a consulting group for urgent care facility start-ups experienced rapid growth in its services and sales lines. Projections anticipated a need to expand its workforce from its current 235 employees to 350 in two years.
- Our Work: Our team was engaged to provide site selection and incentive negotiation services.
- Outcome: As a result of our work, the company selected a new facility that met its operational and expansion needs. We also helped to secure $4.5 million in state/local grants, $1.3 million in Tax Increment Financing benefits, $700,000 in low interest (2%) subordinated loans and an estimated $2.5 million in state
income tax credits.
Investment Banking Advisory Services
- Disciplines Involved: Investment Banking Advisory Services
- Issue: A large Midwestern-based grain-handling company with substantial farming operations asked our team to lead its efforts in finding a replacement lender when its existing lender was acquired by another firm unfamiliar with farming operations. This occurred during a time when the client was heavily leveraged as a result of a recent expansion of its physical facilities and when it was in need of additional credit to fund margin calls for its hedge accounts.
- Our Work: Our consultants began a multifaceted approach for the client, utilizing the skills of 13 different professionals during various stages of the representation. We worked closely with the client to understand its historical financials at the grain handling and farming operation and to identify extraordinary events that led to the last two years of poor performance. We drafted an informational memorandum, which was used to attract interest from potential lenders and equity investors. In addition, we created rolling cash flow projections to support a potential capital stack collateralized by real estate, personal property and other assets of the company.
- Outcome: In the end, we received offers from eight highly qualified parties. Our team evaluated each offer and helped the client determine which to pursue and then assisted in closing the transactions, which was a combined debt and equity package that permitted our client to regain solid financial footing and maintain operations autonomy.
Financial Restructuring and Business Strategy
- Disciplines Involved: Financial Restructuring and Business Strategy
- Issue: One of the largest and oldest steel and precast concrete erection companies in the Midwest with $100 million in annual revenues was faced with Chapter 11 forced liquidation.
- Our Work: Our team assisted the company in formulating a restructuring plan that would drastically deleverage its balance sheet and allow it to exit its current lending relationship. Our consultants performed extensive financial modeling, restructuring advice and aggressive lender negotiations. The execution of the restructuring plan was carefully managed and enabled the company to continue to perform on existing jobs and to take on significantly more profitable new business, while reducing working capital needs and reforming its cost structure for the future.
- Outcome: The company shed all debt and returned to profitability.
Business Strategy & Business Merger
- Disciplines Involved: Business Strategy & Business Merger
- Issue: A regional medical specialty group wanted to explore its options in light of the changing regulatory and competitive landscape.
- Our Work: Our team was brought in to assist in evaluating the firm’s strategic options and to advise on a potential merger opportunity with another specialty group. We counseled the group on both the legal and business aspects relating to the formation of the new merged entity including regulatory, antitrust, financial and corporate formation issues.
- Outcome: As a result of our work, an effective structure was established for our client to pursue a merger with another specialty medical group.
Monetization of Business Know-how and Corporate IP and Launching a Managed Services Company
- Disciplines Involved: Monetization of Business Know-how and Corporate IP and Launching a Managed Services Company
- Issue: A regional medical specialty group asked our team to help it set up an affiliated company to monetize its business knowledge and corporate intellectual property. The group had successfully revolutionized the delivery of certain specialized services within its healthcare system and sought to offer its solution as a managed service to specialty medical practices throughout the country.
- Our Work: We counseled the group on both the legal and business aspects relating to the formation of the new entity as well as the pricing and roll-out strategies for the managed services. A strategic partner firm assessed the group’s IP and advised on the best way to protect and monetize its intellectual property. We performed extensive financial modeling to assist the medical group on its negotiation strategies with prospective joint venture partners
- Outcome: Through our work, the client formed a separate business entity to pursue monetization of its business knowhow and corporate IP. The company has also launched its managed services company and is pursuing appropriate joint venture partners.
New Business Launch & Operation Support Services
- Disciplines Involved: New Business Launch & Operation Support Services
- Issue: A family office wanted to build and develop an aviation division to operate its fleet of aircraft.
- Our Work: Our professionals teamed with an aviation services firm, which held an FAA Part 125 certificate required for the operation of the client’s fleet of aircraft within the continental United States. In cooperation with the client’s other consultants, we provided logistical support for the operations including automated systems with the FAA, Home Land Security and the U.S. Department of Transportation. The aircraft were kept flying throughout the process of building the aviation division. Flight crews, mechanics, hangers, certifications, flight scheduling, trip planning and international landing permits were all part of the learning curve required in this exciting and unique project.
- Outcome: Through our work, the client successfully launched its aviation division and received its Part 125 Certification.
Health and Wellness Program Design and Roll-out
- Disciplines Involved: Health and Wellness Program Design and Roll-out
- Issue: A leading national integrated healthcare provider decided to proactively establish a health and wellness program designed to drive down health care costs for its 14,000 employees.
- Our Work: Our team worked closely with the program director to develop a business model that would allow them to be more cash flow positive in the changing healthcare economy, resulting in the launch of health and wellness services.
- Outcome: Through our work, the company has successfully launched and grown a health and wellness program targeted at large self-insured employers.