Client Profile

WM Coffman, LLC ('WMC' or the 'Company') is the preeminent supplier of stair parts in the United States. With more than 3,000 SKUs, the Company offers its nearly 1,000 customers a full range of wood and iron stair parts, including balusters, newels, rails, treads, risers, and fittings, providing the pieces necessary to create everything from a traditional wooden staircase to an elaborate staircase accented with iron. WMC employs long-term strategic relationships with Asian manufacturers to offer an extensive line of wood stair products and forged iron components, which are available in eight different finishes to complement metal accents in the home. With the combination of outsourced domestic and overseas manufacturing, the Company can provide high-quality products at competitive prices, while being able to achieve attractive margins.

Situation

The Company's financial performance was negatively affected by the recent global economic downturn. Macroeconomic factors such as high unemployment, decreased consumer spending and a depressed housing market contributed to the decrease in the Company's products. As a result, WMC experienced a significant drop in its revenue, which resulted in decreased margins and constrained liquidity.

Solution

SSG was hired as exclusive investment banker to advise the Company regarding strategic alternatives, including the sale of its equity and/or debt. Professionals at SSG marketed the Company to a wide range of strategic and financial parties, ultimately receiving multiple offers for the Company. After careful consideration regarding WMC's working capital needs and stakeholder objectives, SSG was able to successfully negotiate and close a UCC Article 9 sale in three weeks with Prophet Equity LP.

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