After eighty years of business, a generational transfer forced a family business into bankruptcy due to the debt being purchased by an investor group in a distressed sale of the senior secured lender. The Company needed someone with experience in negotiating skills and turnarounds along with the ability to educate the family on the process and alternatives. CSuite was called in by the investor group that acquired the business debt to help with the plan of reorganization.
Challenges
Our Partner’s first task was helping the family come to terms with the tough choices ahead and to help them understand the reality of the situation. He also needed to quickly identify the value of the existing business and and go-forward team to run the operations.
Solutions
- CSuite’s experience and communication allowed them to educate the family on the status of the business and evaluate the risks of keeping or selling the business.
- Assisting and educate the family through the bankruptcy process
- Provide a realistic go forward business plan.
- Manage cash flow.
- Work with the lender during and post-sale to achieve the value of the business.
Outcome
CSuite was able to navigate the transition and help the family understand the financial implications of the decision. During the process, CSuite was able to work with both the family and lender for a successful exit by the family. Additionally, the family was able to secure assets for their future. CSuite continued to work with the lender to market the business for an eventual sale to a major international corporation