Trading Case Study

Jun 17, 2016 by sherwood 0 comments
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The company executed its national advertising plan flawlessly while eliminating an $8 million loss.

Trading Case Study

The customer need:

A large consumer products company was closing a manufacturing plant that contained new and used equipment that was no longer needed. The real estate and equipment was on the books for $10 million, but unfortunately that value in the market place was only about $2 million. The company needed to sell both property and equipment within the year, so the potential damage to the bottom line was significant.

The Sherwood solution:

Sherwood paid the company the full book value of $10 million. By using trade credit as the currency, the company was able to avoid a loss, and the Sherwood investment became part of successful cable television advertising campaign. As for the real estate and equipment, Sherwood negotiated with and received approval to dispose of the asset using the Loeb Equipment Company.

Result:

By using Sherwood, the company eliminated the risk of losing $8 million. The company also flawlessly implemented its advertising campaign, meeting all its delivery goals in the process. Both of these activities occurred within the desired time frame.