International Vitamin Corporation

Summary

Financial Advisor

Irvine, CA

International Vitamin Corporation (“IVC”) is a manufacturer of dietary supplements for some of the leading retailers in the US; as well as nutritional, prescription, and OTC products for contract customers throughout the world.

The Company had seen an increase in customer demand as a result of COVID, however, the prolonged impact of COVID had a negative impact on the company’s supply chain – driving up material, freight and labor costs. The increased costs, and shortage of supplies, challenged the Company’s ability to meet customer orders which hurt both liquidity and operating performance. As a result, the Company was in technical default of its credit agreement and needed to hire a financial advisor.

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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