Partnering with Operators for Distressed Asset Turnaround

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To execute a successful distressed asset turnaround investment strategy, it’s crucial to establish partnerships with executives and operators both during diligence and after closing. Our client entrusted us with the task of identifying the perfect-fit executives to validate their thesis, seize opportunities, and offer post-closing support as they ventured into the beverage rigid packaging manufacturing and distribution sector.

Sourcing Precise-Fit Industry Experts to Evaluate Thesis Challenge

To begin, Apex Leaders conducted a comprehensive intake call to fully understand our client’s thesis, investment strategy, and expertise needs.

Our client has a wealth of investment experience in the food and beverage packaging industry and proven expertise in investing in and transforming companies undergoing complex operational and financial challenges.

Due to the significant increase in the number of craft breweries, distilleries, and wineries in the United States over the last decade, the demand for rigid packaging solutions has surged. With this rapid expansion, our client saw potential for distressed investment opportunities in the beverage packaging manufacturing and distribution space.

To explore the potential, Apex Leaders went to work to find former and current industry executives that could help our client:

• Investigate the landscape of publicly-traded and privately held ridged packaging solutions manufacturers.
• Analyze the competitive landscape.
• Understand overall market trends.

After conducting research and speaking with industry executives, our client identified a potential investment opportunity in the beverage packaging manufacturing and distribution space. They proceeded to purchase the debt of a leading provider of rigid packaging solutions for the wine, beer, liquor, and food industries, based on their confirmed thesis that the industry was primed for growth.

Taking Investment from Debt Purchasing to Acquisition Concerns

Our client’s investment journey began with the purchase of a portion of a prominent rigid packaging solutions provider’s debt. Due to the manufacturer’s vast growth potential, they set their sights on acquiring the company and implementing a turnaround strategy that would result in a thriving and sustainable business. To achieve this goal, Apex Leaders connected them with experienced executives and operators in the manufacturing and packaging industries who had a proven track record of partnering with private equity firms to execute successful turnarounds.

In addition to seeking out deeply tenured executives from direct competitors or parallel packaging manufacturers, our client was interested in gaining insight into customers’ evaluation criteria when selecting a supplier. Apex sourced, vetted, and presented:

• Former CEOs and Presidents of leading competitors
• Strategic high-level formers of the target company
• Current CEOs and Founders of key customers

Our client was able to proceed with confidence and successfully acquire the target company thanks to the insights gained from the conversations.

Nurturing Relationships to Fill Critical Positions

Through thorough sector thesis analysis and due diligence, our client established partnerships with top-tier senior executives. Following the acquisition, they successfully placed two of these executives – one leading supply chain operations, and the other serving on the board of directors. The guidance provided by these executives has been critical in driving a turnaround and facilitating the success of the company.