WYNDHAM MEXICO PARTNERS

Target Companies & Deal Flow

Wyndham Mexico has developed untapped deal flow sources of Mexican export manufacturers, with annual sales of up to US$1 billion – most have sales in the range of US$100 million to US$200 million – but with substantial unused capacity, especially over-leveraged companies. In these situations:

• Over-leveraged target companies are unable to obtain working capital financing
• Their Mexican lenders are further burdened with large non-performing loan portfolios
• Mexican government agencies are owed substantial amounts in taxes, social security and other dues
• Their owners / managers cannot repay their companies’ debts
• Yet, they have substantial order backlogs which they cannot fulfill without working capital, and they risk losing customers unless they can assure them of their ability to supply the backlog.
  

Wyndham Mexico provides a solution to all parties locked in such situations, where no solution was available:

• The companies (the borrowers),
• The banks and government agencies (the creditors),
• The employees and unions, whose livelihoods are at stake,
• The owners / managers (the equity holders and, often, also the debt guarantors), and
• The customers, who are being deprived of a cheap, and otherwise dependable, supply source.
  

Wyndham Mexico focuses on businesses that provide critical added value in the supply chain, particularly contract manufacturers, rather than commodity producers, whose businesses tend to be cyclical, and end-product manufacturers, which must spend heavily on consumer advertising and marketing to sell their products.

Wyndham Mexico’s deal flow sources generate exclusive transactions and include:

• Wyndham’s organization, including its “Executive Team Network™” and unique Mexican Board of value-added advisers
• U.S. and European executives who are in or are derived from specific industries
• Mexican banks’ non-performing loan portfolios
• Investment firms holding distressed loans
• Mexican government agencies responsible for bank restructuring, export finance and other activities
• Direct referrals from Mexican business owners and their professional advisers
• Industry and trade associations
• Professional service firms (lawyers, accountants, consulting firms) with whom Wyndham Mexico has worked