American Micro

Situation

American Micro Products, Inc., is a family-owned manufacturer of various precision-machined components, serving diverse markets including heavy equipment, aerospace, medical devices, and others.

The Company suffered lost revenue and extraordinary operating costs when a supplier’s product caused production problems. Subsequently, the Department of Labor determined that the Company must reverse an equity investment that was previously made by its shareholders through a 401k plan.

As a result of this performance, the Company’s bank required it to find a new lending source.

Solution

Amherst initially conducted an analysis of the organization and vetted the Company’s budget. This process resulted in several recommendations regarding improved deployment of capital and structural and operational changes to the organization.

Results

The Company began to implement the changes suggested by Amherst which improved financial and operational metrics.

Amherst crafted a credit offering memorandum and conducted a marketing effort to refinance the Company’s debt.

The Company successfully refinanced with another bank with terms and conditions that resulted in savings. The new bank was also able to provide a range of services better suited to the Company’s needs regarding their forecasted growth.