The Company, a strategic transportation and logistics provider primarily serving the automotive OEMs and Tier-1 suppliers, began experiencing financial difficulties and was under increasing pressure either to recapitalize or sell the business. The OEMs were also ready to support liquidation if another solution could not be found.
Our financial advisory professionals assisted in negotiating an Accommodation Agreement with the OEMs and a Forbearance Agreement with its lender, which allowed the OEMs to provide financial support that enabled the company to operate until an acceptable buyer that met with the OEMs’ approval could be identified.
The advisory team also prepared and managed cash flow forecasts to ensure there was sufficient liquidity to continue the operations as appropriate and then to assist in the Company’s winddown after the sale of its operations.
We then approached a select group of strategic and financial buyers and received multiple indications of interest at competitive valuations within 45 days. Of the multiple offers received, one of the OEMs rejected virtually all the prospective acquirers for their own strategic reasons, yet the team was still ultimately successful in selling the company to two separate buyers.
The entire process of developing a cash flow model, negotiating and entering into an Accommodation Agreement with the OEMs and a Forbearance Agreement with the lender, as well as the sale of the business in two transactions, took approximately 90 days from start to finish. The transaction resulted in the bank being paid in full, virtually all the line employees being retained by the buyers, and the trade creditors were substantially paid, as well.