Selling a Dealer Business Back to its Manufacturer

Construction & Real EstateTurnarounds & Restructuring

150M

Annual Sales

20M

in Debt

Western Power & Equipment (WPEC), Vancouver Washington

Challenge

Financial Advisor. Largest J.I. Case equipment dealership in Portland, OR and Vancouver, WA area with approximately $150 million in revenue. $20 million debt.

  • Company was out of formula on existing $30 million Case floor plan.
  • Attempted sale of the business was unsuccessful.
  • Company faced a significant crossroads as it was also losing trust of the OEM.

Solution

  • MorrisAnderson (MA) worked with the Company’s management to develop a financial model and achievable set of financial projections.
  • MA assisted the Company in negotiations with the OEM. The negotiations resulted in a deal with Case to sell back inventory to corporate.
  • Executed on various cost cutting initiatives as well as closed or sold select dealerships.

Results

  • The sale of equipment back to Case enabled the Company to redirect business line and move forward.

Contributors