Classic Brands

Company Background

Classic Brands is a small company that designs and markets consumer products.  The company was purchasing another industry player in a transaction that would more than double the size of the business.

The Challenge

Classic Brands was in the midst of a combined M&A deal and raising debt and equity capital to support the transaction.  Having worked for over a month with a “cheap” business analyst, the company’s CEO and the investment banker threw up their hands: the model just wasn’t balancing.  The analyst couldn’t get the job done and the transaction was at risk.  The investment banker reached out to The Brode Group.

The Solution

The Brode Group analyzed the existing work and quickly realized it was too much of a spaghetti mess to continue with.  The solution was to take the operational outputs (revenue, COGS, and EBITDA) from the existing work, but to run it through Brode’s proprietary software.  Further, Brode carefully separated layers of the transaction so all the complex moving parts could be accounted for carefully both in the company financials and in the cap table.

The Execution

Brode had a working draft back within 48 hours of engagement.  Two working days later, all parties had signed off on the model and it was ready to go to the lenders to nail down the first tranche of the new capital.

The Outcome

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The CEO Says

“The Brode Group was a lifesaver. I was in a crisis as my current consultant could not deliver after repeated missed deadlines. The Brode Group came in and delivered everything in record time. I wish I had gone to them first. I absolutely will next time!”

What’s Next

Learn more about our Transaction Support services.

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