Refinancing the debt of Israel’s leading food wholesaler

• Business Dilemma:
  TASC was commissioned by a consortium of five lenders to value the company’s equity, which was being used as collateral for debt provided by the lenders in connection with the company’s acquisition

• Process:
  The process included a review of market trends in the company’s various business segments, focused on the increase in competition post-reduction of import tariffs, and the entry of “private label” brands into the market. Also, an evaluation of the Company’s business plan and financial status was undertaken, validating the ability to meet its five-year business plan, and a financial model was constructed to evaluate various scenarios for the company’s expected cash flow. Alongside this, a determination of the company’s weighted-average cost of capital (WACC) was performed and a final valuation was determined

• Strategic Solution & Impact:
  Examination of the company’s value showed various gaps in the securities offered to the lenders. Accordingly, the financing plan was altered by the lenders

For more information: Yarden Shtrozman, Yarden.Shtrozman@tasc-consulting.com