Red Monkey, a producer and bottler of blended spice products such as cumin and salt, faced severe operational and financial challenges including inefficient manufacturing processes, declining revenue, rising raw material costs, significant financial restatements, and tightening liquidity. With its Sponsor withdrawing support, the Company was at risk of failing as a going concern.
CMA conducted extensive due diligence, analyzing standard costs by SKU and customer, evaluating the new management team’s operational improvement initiatives, reviewing capital expenditure needs, validating the 13-week cash flow, and building an integrated financial model to quantify funding requirements and sensitize management forecasts.
CMA advised the lender group on multiple potential paths, outlining short-term funding to pursue an immediate sale, medium-term capital to support a more deliberate sale process, and long-term equity funding to enable a full turnaround, providing a clear framework for decision-making in a distressed and rapidly evolving situation.
