Project Bauer

Exclusive Financial Advisor

Operational & Financial Restructuring

ABOUT THE COMPANY:

Bauer is a third-party logistics company that develops dedicated solutions for large clients – including value-added warehousing and distribution, transportation, and freight brokerage.

SITUATION:

The Company was highly indebted as a result of a large acquisition and – after the loss of a significant and highly profitable contract – was experiencing large declines in EBITDA. The Company was also in default with its lenders. Several business units were underperforming relative to their peers in terms of profitability, and were largely operating as silos.

ENGAGEMENT:

After its prior restructuring advisor had unsuccessfully attempted a turnaround strategy, the Company retained G2 to serve as its advisor in connection with an assessment and development of an operational restructuring plan. During Phase I, G2 performed a full situational assessment and developed a restructuring plan.

OUTCOME:

G2 determined that profits earned by the core businesses were being eroded by underperforming non-core operations – and that to improve profit margins and achieve a return to growth, management needed to refocus on its core businesses. G2 focused on maximizing short-term liquidity and narrowing the Company’s focus to drive profitable growth; as a result, EBITDA shifted from negative to a positive 6% of revenue within a year.