Hybrid Bridge Deal Case Study

Jun 16, 2016 by sherwood 0 comments
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Hybrid Bridge Deal--Cash and Trade

Situation

A well-known apparel company acquired their #1 competitor and transitioned their business to bemajority e-commerce. Because of this new consolidated business they had $800K in excess/discontinued inventory.

Solution

Sherwood paid full wholesale price of $800K to the apparel company in exchange for their excessinventory; $100K cash and $700K trade credits. Sherwood then sold the excessinventory to secondaryand tertiary retailers which were approved by the apparel company.

Result

This transaction yielded positive EBITDA for the apparel company, resulting in the utilization of their trade credits in exchange for ocean freight, post click fulfillment and the creation of a new digital media campaign.