After being acquired by a private equity firm with a strict exit timeline, U.S.-based pest control manufacturer Woodstream needed to increase enterprise value. To support this goal, the company wanted to pay down debt and expand its global footprint. However, given the business’s seasonal cash flow cycle, low-cost liquidity options to fund these goals were limited.
The company turned to supply chain finance with several objectives in mind. In order to quickly meet its cash flow goal, the company needed to get the program up and running quickly. It was also important that any payment term extension and program onboarding was done without hurting or disrupting suppliers’ businesses. With PrimeRevenue’s help, Woodstream was able to achieve these objectives while exceeding leadership, investor and supplier expectations.
Key takeaways and results include:
- A $11.5M cash flow gain within first three months
- DPO extended from 54 to 100+ days
- Rapid implementation – suppliers onboarded in as little as two weeks
- Strong supplier participation with many ready to trade before program was fully implemented