Saving the family business
- Financial modelling
- Business restructuring
- Leveraging relationships
A family business was in dire need of assistance. Their bank had told them they were no longer willing to support them – in fact, they were exiting the industry. Our client was taken by complete surprise and frightened they were about to lose everything. These were family assets that had passed through generations. Sure, the business was losing money however they were building significant inventory that needed to “mature”.
We needed to save the family farm and preserve family relationships.
After reviewing the business and preparing financial modelling, we identified that if they sold off some of their bulk wine while continuing to build inventory, they could turn the business into positive cash flow. With our relationships with banks we were able to show this modelling to the bank and they happily refinanced the family’s debt, allowing them to exit their former bank with no penalty. Today the family continue to produce award wining wines.