$40 Million Plastics Processor

Target

• Plastics processor in the southeastern United States
• Just completed a significant product launch
• Forecast was based on one quarter run rate
• Significant customer concentration (three customers, approximately 90 percent of sales)
• Target proposed several EBITDA adjustments

• Completed strategic, high-level operational, and financial due diligence
• Used Plante & Moran’s proprietary Plastic Processor Benchmarking database to analyze target’s operating results
• Completed a thorough financial and operational assessment to verify expected post-launch run rate
• Completed customer interviews and market segment analysis

• Identified several, post-closing operational improvements that would immediately increase EBITDA
• Buyer negotiated a post-LOI purchase price reduction based on the rejection of several proposed adjustments as well as additional adjustments discovered during due diligence
• Strategic and market assessments created a foundation for using the target as a platform company