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Case Study: Watch Manufacturer and WholesalerManagement of Debtholder/Investor Relations, Business Plan Review & Assessment, Financial RestructuringCompany: $275 million manufacturer and distributor of watches, clocks and pens to the mass merchant, mid-tier and private label markets.Situation/ Tasks Performed: The Company is a roll-up of three distinct watch and clock businesses. Although some of the individual businesses overlap in certain markets, each operation primarily sells to different target markets. One targets the mass market selling watches, clocks, pens and accessories at low cost and in high volumes. Another sells primarily private label watches to mid-tier and high-end retailers. Finally, the third business produces and sells its a highly recognized sport watch and accessory line under its own private label. The Company was expected to achieve growth and cost synergies through the roll-up. When these results failed to materialize, TRG was hired by the Bank to validate the Company's business plan and projections. Early on in the relationship, the Company asked to hire TRG for its own account and after appropriate releases were obtained, TRG began working for the Company to assist in its relationship with the Bank and to gain the Bank's support for its business plan. Results: TRG performed detailed operational and sensitivity analyses on the Company's business plan. TRG determined that although the Company had not achieved the high sales and EBITDA growth forecasted by management in the roll-up, the core businesses were solid and profitable. TRG convinced the Bank to enter into negotiations to extend its relationship with the Company under a revised covenant structure. Nature of Assignment: Primary: Management of Debtholder/Investor Relations Secondary: Business Plan Review & Assessment Tertiary: Financial Restructuring Industry: Manufacturing; Distribution
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