A Plastics Manufacturer Secured Key Financing, Saving Almost $20,000 in Interest

The Client

Sussex IM

Measurable Result

With support of SVA’s due diligence audit procedures, a management group was able to obtain financing at a reduced rate, saving between $14,000- $20,000 per year in interest.

The Story

In 1977, a plastic injection and custom molding manufacturer put down roots in Sussex, WI where they have continuously thrived for over 33 years. Like many companies, the economic downturn in 2008 forced businesses to restructure and re-align their business models. The owner of the Sussex plant decided moving the plant was not feasible and instead opted to offer three partners an opportunity to purchase the plant in a strategic buyout.

SVA assisted the management group in providing the due diligence audit procedures necessary to secure the financing needed to purchase the plant. Through the due diligence procedures, the professionals at SVA provided the proper assurance to the financial institution.

“SVA gave very good assurance that the reports and projections we provided were prepared correctly and the forecasts were right on,” stated Dave Guagliardo, Chief Financial Officer at Sussex IM. “Their in-depth analysis was very straight forward, giving the financial institution a higher comfort level and the confidence needed to offer us a better interest rate. In fact, we were able to secure a better interest rate than we had originally predicted.”

As a result, the management group was able to purchase the plant from the previous owner and as of January 2010, the company reopened as Sussex IM an industry-leading injection molding solutions provider.

In addition to the due diligence audit procedures, SVA has assisted Sussex IM with auditing, tax services as well as with a cost segregation study.