The Alderney team has led over 150 automotive engagements, driving successful solutions to clients. Alderney professionals help OEMs and suppliers manage their supply bases, implement restructuring initiatives, evaluate acquisitions and divestitures, understand key trends, and manage challenging dispute matters. As automotive and manufacturing companies continue to face critical strategic and financial decisions driven by progressive technological innovation, regulatory changes and an evolving competitive landscape, partnering with a team of experienced advisors with extensive professional networks can make all the difference.
Supply Risk Management
The Alderney team possesses a rich background in protecting supply bases from risks magnified by just-in-time delivery and single-source purchasing. Services span proactive reviews with the Alderney Scorecard™ assigning financial health to companies to complete financial and operational support during supply crises.
Global Industrial Matter
Represented more than a dozen constituents in a confidential global industrial matter with complex relationships amongst many stakeholders. Developed various strategies with legal and financial advisors to support a pathway for a continuing entity.
Global Aluminum Casting and Forging Supplier
Advised two global OEMs (US and Japanese) and one global Tier 1 supplier (German) in a customer group regarding a severely distressed critical supplier in the US with a European parent unable to provide financing. Critically evaluated and analyzed supplier’s short and long-term stability and viability. Developed, with client and supplier teams, an efficient funding structure to support short-term operating and capital expenditure cash needs and maintain parts production while a long-term strategy was developed and implemented.
China Based Supplier to North American OEM
Advised OEM regarding China-based supplier that failed to start up operations after the year -end holiday shut down. Worked with China-based colleagues, to determine cash costs to start up operations, developed local funding mechanism to support working capital needs, restarted operations within two weeks and maintained continuity of supply at the US assembly facility.
The Alderney Scorecard™ is a financial risk management tool developed to help mitigate global supply chain risk. Alderney’s approach provides a disciplined framework to identify the critical factors driving a supplier’s financial results. Through decades of invaluable case experience in the manufacturing sector, the Alderney team recognizes that each risk assessment study presents unique nuances and therefore human interaction is essential to capturing relevant detail and producing meaningful and executable results. The Alderney Scorecard is a global financial tool.
Alderney Advisors has extensive experience in bringing constituents in a turnaround together for a shared solution. When options are narrowing, Alderney Advisors can provide timely and well thought out strategic alternatives to guide parties to the best solution.
Advised two global OEMs (US and Japanese) in a customer group regarding a critical US multi-plant distressed supplier in the textile sector. Ownership had recently changed, important launches had occurred with difficulty and within six months, the new ownership experienced a cash crisis. Alderney was engaged to confirm the size of the cash need, craft a solution for equitable sharing of the cash need, evaluate the company’s five-year business plan to determine its long-term viability. Alderney’s advice resulted in multi-year agreements between the company, the OEMs, equity and the lender providing a long-term sustainable textile supplier to the NA OEM community.
A transaction in the automotive or manufacturing space requires deep expertise and knowledge of industry complexities across multiple disciplines including financial, commercial, operations, technology, human resources, tax, legal, and regulatory. Alderney has extensive expertise navigating clients through these intricacies. Our professionals drive collaboration across work streams to build a common focus on the key transaction drivers critical to a successful transaction outcome.
Carve-Out Buy Side Advisory Machine Tool Manufacturing
Advised a global strategic acquirer headquartered in France on its acquisition of the Americas-based operations of a global machine-tool manufacturer with approximately $400 million in annual revenue. Performed buy-side financial diligence. Key value delivered: (i) identified approximately 25 individual due diligence adjustments, resulting in a net 18% reduction to the seller’s EBITDA for the most current fiscal year and client reducing the dollar value of its offer; (ii) advised client of a significant risk with respect to potential stranded costs, which led to the inclusion of specific protections in the purchase agreement and development of related transition services agreements; and (iii) teamed closely with client and counsel to reach settlement of contentious post-closing disputes.
Trends in the automotive and manufacturing industries are significantly influenced by changing macro-economic conditions, technological evolution, and corporate strategies. Our professionals assess the client’s situation amongst these top trends and help develop detailed successful strategies and profitable outcomes.
Strategic Options Assessment – Interiors Supplier
Supported a global OEM’s strategic options review for critical but underperforming manufacturing facility of a global, Tier 1 supplier. Through site visits and thorough due diligence of plant-level and parent financial information, developed a stand-alone financial assessment for the facility. Prepared multiple forecasts and scenarios, including buy, sell, resource, improve, and restructure. Aided in client’s negotiations with the supplier and several takeover candidates. The plant was successfully transitioned to a competitor committed to improvement and expansion of the operations.
Strategic Review – Metal Stamping
Partnered with a global OEM and its Tier 1 supplier to conduct an in-depth review of pricing strategy, operational effectiveness, sources and uses of capital, and the broader macro-economic elements impacting a critical plant and program. Through on-site due diligence and management interviews, gained key insights as to causal factors of historical performance, achievability of capacity increases, and expected program-life return on investment. Delivered comprehensive set of recommendations, guiding constituents toward a sustainable win-win resolution.
When events don’t go as planned, the Alderney team is highly skilled at quickly understanding complex business issues, gathering the necessary information, developing the analytical framework in support of a client’s interests, and providing the expert testimony to support those interests.
Die Casting Supplier
Engaged to provide an expert witness report and possible testimony around automotive industry standards on competitive bid processes. Reviewed complaint, discovery documents and depositions and advised legal counsel regarding weaknesses in opposing party’s competitive bid processes based on knowledge of standard industry practices resulting in a positive settlement for the client.
Price Quote Competitiveness
Jointly engaged by two suppliers to analyze price quotes for competitiveness. Reviewed contracts and quote packages, interviewed management of each supplier, compared quotes across multiple critical factors, and prepared a comprehensive, transparent report that allowed the parties to advance forward in their negotiations.