Due Diligence Audit Procedures Saved Almost $20,000 in Interest
In 1977, a plastic injection and custom molding manufacturer put down roots in Sussex, WI where they have continuously thrived for almost 40 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 that moving the plant was not feasible and instead opted to offer three partners an opportunity to purchase the plant in a strategic buyout. SussexIM is an industry leader in custom injection molding that grew from a small but industrious group of employees to be a modern integrated manufacturer.
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 SussexIM. “SVA’s 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 SussexIM, an industry-leading injection molding solutions provider.
In addition to the due diligence audit procedures, SVA has assisted SussexIM with auditing and tax services as well as with a cost segregation study.