Investment Banking/M&A Transactions

OE Quality Friction (OEQF) was founded in 1997 on the principle of marketing Original Equipment quality disc brake pads at competitive aftermarket prices. 

As a result of breaches to the debtor’s borrowing base covenants we were initially appointed to complete a review of the business and its plans as well as a review of its projected cash flow forecast.  It became evident that the business was suffering from high overhead costs due to an unnecessarily lengthy transition of its operations from Canada to Mexico as well as reduced gross margins.

Farber were appointed as receiver of the business in order to gain control over the cash bleed and complete a sale of the business.

The results were as follows:-

• Completed the transition of the operations from Canada to Mexico significantly reducing overhead costs.
• Oversaw creation of 3-week rolling production plan, thereby increasing profitability by prioritizing higher gross margin products and reducing change over time
• Worked with the corporate finance team to sell the business expeditiously
• Created monthly and weekly forecasts including operational and financial key performance indicators
• Prepared monitoring and reporting templates
• Pursuit of realizations on all assets of the business including trapped inventory and litigious accounts receivable