International Vitamin Corporation

Summary

Financial Advisor

Irvine, CA

International Vitamin Corporation (IVC) is a global leader in the manufacturing and distribution of vitamins, dietary supplements, and nutritional products. The company provides private-label and branded products, partnering with retailers, pharmaceutical companies, and other organizations to deliver high-quality, science-based solutions. IVC operates with a focus on innovation, quality assurance, and regulatory compliance, serving markets across North America, Europe, and Asia.

The prolonged impact of COVID led to supply chain disruptions, increasing material, freight, and labor costs, which strained its ability to meet customer demand, impacting liquidity and operational performance. Facing technical default on its credit agreement, IVC engaged Carl Marks Advisors (CMA) to support recovery efforts.

CMA developed a liquidity forecasting process with regular updates for senior lenders, assessed and adjusted the company’s strategic plan and budget to establish realistic covenants, supported leadership transitions and employee retention during the turnaround, and enhanced operational efficiency by addressing manufacturing and supply chain challenges.

Key Challenges

COVID-19 related supply chain issues

Management turnover

Operational underperformance

Engagement Highlights

Develop a liquidity forecasting process, which included a weekly presentation to the Company’s Senior Lenders.
Review / assess / risk-adjust the Company’s strategic plan.
- Identify key risks and opportunities to the Company’s budget and longer-term strategic plan.
- Based on the analysis of the risks and opportunities, CMA developed a “risk-adjusted” budget that was critical for the Company and its lenders in setting achievable covenants.
Support management and the employee base broadly through several SLT (“Senior Leadership Team”) transitions to retain key staff through the operational turnaround.
Evaluate the Company’s operational efficiency and identify and implement performance enhancement techniques.
- Due in part to COVID related supply chain issues, but also operational shortfalls, the Company’s operational effectiveness was well below effective levels.
- CMA assisted the Company in addressing manufacturing line short falls and sourcing issues.

International Vitamin Corporation

Summary

Financial Advisor

Key Challenges

Engagement Highlights

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