A mid-market international craft beverage equipment manufacturer was experiencing a combination of deteriorating financial performance and liquidity constraints amid a broader downturn in the craft beverage industry. The situation was exacerbated by the challenges of managing a global vendor base, as well as the cost pressures resulting from tariffs in 2025. Moreover, the secured lender sought to evaluate and pursue value-maximizing strategic alternatives.
MCA Financial Group was retained to stabilize and oversee operations of the business while preparing the company for a potential sale or other strategic transaction—a challenge in its own right, due to few potential buyers who were also struggling in the craft beverage equipment industry.
Liquidity constraints limited the Company’s ability to implement longer-term improvements. As a result, MCA focused on near-term stabilization, advancing the sale process on an accelerated timeline, and working iteratively while coordinating closely with management and the secured lender to keep the process moving forward. To address compressed margins and limited operational flexibility arising from global supply-chain and tariff pressures, MCA implemented measures to mitigate operational risks and incorporated these considerations into both planning and buyer-facing materials.
The formal sale process launched in mid-year 2025, targeting strategic buyers and emphasizing asset value, technical capabilities, and operational expertise. MCA’s role as an intermediary between management, the secured lender, and counsel was critical, in both managing ongoing operations and ensuring alignment throughout the sale process. With the impact of tariffs, industry decline and a buyer pool suffering from the same, values above the secured debt were not achievable and a sale transacted was forced through the an Article 9 foreclosure sale.
MCA’s work achieved an outcome that, given the market environment, solved the continued cash burn from this business. The engagement highlighted MCA’s ability to deliver value in a complex, high-stakes situation with limited strategic alternatives. The success of the restructuring process illustrated MCA’s financial, operational, and transaction-related expertise in a distressed operating and sale environment.
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