Interim Dairy Farm Management Gets Full Value Sale

Michigana Farms

Kalamazoo, Michigan

Challenge

$25 million large dairy farming operation. $20 million secured debt. MorrisAnderson acted as Receiver and Investment Banker. Quick sale process resulted in completed sale in just 114 days.


  • 6,200 herd cattle and dairy operations with 3,000 dairy cows.
  • Company under liquidation process.
  • Limited options to maximize value given time constraints of liquidation process.

Solution

  • MorrisAnderson engaged as Receiver and began investment banking and operational improvements to maximize value.
  • Industry insight provided expertise to identify $2 million of annual cash flow improvements.
  • Structured three part sale and identified three groups of interested parties to maximize activity in auction process.

Results

  • Three part sale structure provided floor for initial stalking horse bids.
  • Structure created avenue for going concern buyer to step in but also created requirement to overbid the piece meal bidders.
  • Final bid by going concern buyer was 20% higher than initial bids due to structure.
  • Cash paid to senior secured lender 114 days after implementation of sales plan.

Daniel F. Dooley

Dan Dooley, CTP, is a Principal and CEO at MorrisAnderson based out of Chicago. He has a strong national reputation in crisis management, operations improvement, debt refinancing/restructuring and C-level positions. He is a frequent speaker at industry conferences and a regular author for industry periodicals. Dan has served on the Board of Directors of both… Read More