When Crisis Management Is Not Enough

Often, the combination of financial, operational and strategic issues facing a company forces the owners or lenders to consider divesting specific assets, entire divisions, or a sale of the entire company. Although the decision is not easy, falling profits, declining cash flow or a shift in the market may have left the company supporting capacity or businesses that are not appropriate for long-term survival.

We know how to address immediate operational issues to improve financial results and the resultant impact these efforts have on the sales process. We understand how a company’s balance sheet affects its access to capital, how lenders and investors truly value entities operating in distress and how a strategic sale of the right combination of businesses or assets can dramatically reposition a company for a successful turnaround.

Sales and Divestitures

Our divestiture strategy has four critical tenants:

• Identify divestiture candidates that position the company for the greatest probability of recovery
• Manage for-sale units to preserve value throughout the sale process
• Leverage our unique backgrounds and industry contacts to access to “non-traditional” capital sources as well as typical strategic and financial buyers
• Control timing to maximize sale value and execution certainty

During the process, we facilitate negotiations between potential purchasers and all stakeholders. We foster competing bids and manage contemplated breakup fees in efforts to maximize value. We coordinate the efforts of other professionals and specialists, including attorneys, accountants, lenders, bondholders and investors. With a cohesive and coordinated approach, we help companies overcome the pitfalls associated with restricted timeframes, limited liquidity and sophisticated terms inherent in distressed transactions.

Acquisition Services

We help purchasers evaluate targets, streamline the acquisition process and coordinate priorities. In addition to the typical financial due diligence process, we go “outside the numbers” to target how a company generates cash and performs on non-accounting measures. This approach enhances your understanding and management of value and risk drivers throughout the transaction time frame.

We provide both financial and operational due diligence services. This process gives an objective view of not only the current financial position of the target, but also identifies key issues impacting the likelihood of successful integration. In addition to the typical financial due diligence process, we go “outside the numbers” to target how a company generates cash and performs on non-accounting measures. This approach enhances your understanding and management of value and risk drivers throughout the transaction time frame.