Manufacturer (Housing Products)

Challenges

This was a longstanding company with a good name and great products, but cash flow was burdened by excessive debt. We were engaged at the last moment, when the owner felt he was within a week of bankruptcy or liquidation.

Solutions

  • Uncovered and clarified the value story. The company’s reputation and customer list would be extremely valuable to others desiring to enter this market.
  • Applied cash to preserve the business. We were convinced that the company had more value as a going concern. It would not benefit anyone – the bank or the owners – to liquidate the assets.
  • Told the story. We convinced the bank of the merits of our plan. We then identified an audience of interested parties, told the story and convinced them of the company’s strategic value.

Outcome

A midsized regional manufacturer bought the company after several similar firms expressed interest. The new owner used the acquired facilities as its base of operations to enter this market. The bank received far more than they would have in liquidation, the owner was relieved of remaining guarantees and was hired by the new owner to lead their initiative in this region.

Return to client stories