Alexander Corporate Finance (“Acf”) was hired in May 2014 by Zamboni, the largest wholesale distributor in the State of Rio de Janeiro, to perform a diagnosis on its Capital Structure and financial situation.
In June, 2014, Acf appointed an interim CFO to oversee the Capital Structure Transformation Project. At the same time, Mr. Alexander was appointed Member of the Advisory Board.
Under the coordination of Acf and supervision of the Advisory Board, Zamboni revised and restructured all its financial activities, procedures and practices. The whole project aimed at improving Zamboni´s management skills and avoiding to create any future dependence of external advisers on its regular activities. Following this objective, in 2015 the interim CFO was replaced by a definitive CFO, selected with Acf support.
Over the same period, the Advisory Board also conducted a Revision of Operational Procedures and Costs Project (“ROPC Project”), adopting the “Zero Base Budgeting Method”. Zamboni was supported on this projects by GRADUS (www.gradusconsultoria.com.br) appointed by Acf.
The Capital Structure Transformation Project, the ROPC Project and all management initiatives over this period resulted in a dramatic improvement of the financial performance and capital structure. Without any extraordinary measures as capital increase or debt haircut, in a well conducted long term relationship with all stakeholders, including, but not limited to, workers, suppliers, clients, banks and government, the debt level was reduced only as a result of the improvement of the working capital and all above mentioned projects.
In two years, the Net Debt / Ebitda ratio decreased from 9.28x to 0.73x. The Net Debt was reduced to one third.
Mr. Alexander remained at the Advisory Board until December 2016, when the shareholders and the Board announced that the Capital Structure Transformation process was concluded and its goals were successfully accomplished.