Restructuring Advisors

Corporate Dispositions

mazeThe global economy has forced U.S. companies to confront matters that are crucial in their ability to continue operations. For a number of these companies these concerns are industry-wide where production moving off-shore has created cost and pricing problems with overpowering financial impact. Others are highly leveraged resulting from M&A activity. Several industries have simply seen so much change in their marketplace that the requirements for their products or services have been significantly reduced or eliminated. The reasons are many, but regardless of whether you are a lender, owner or investor, there is a point in time when continued investment is no longer a reasonable decision.

Should you find your business, or your clients business in a situation similar to those noted above, it is likely that selling the business as a going concern will not yield the best result. A viable option is to sell or liquidate the corporate assets. The term “liquidate” in this regard is defined as converting assets to the maximum level of cash. The assets may be real estate, production equipment, trucks and trailers or other physical assets. Of equal consideration are the intangible assets or the intellectual property including trade names, websites, patents, customer lists and such. The earnings realized from the sale of assets can be used to pay off secured creditors, suppliers, equity partners or to fund new endeavors.

Restructuring Advisors handles the sale of assets for lower to middle market companies in a manner that yields the highest recovery value. It is common for individuals to get the wrong impression about the term “liquidation.” People have come to believe the term means selling assets at a highly discounted amount. At Restructuring Advisors we manage asset sales through an orderly liquidation process. Even when a business is distressed, utilizing an orderly liquidation process normally yields the greatest return. An orderly liquidation is designed, organized and moves at a very deliberate pace. Through our experience we know that there is a definitive correlation between time and value. Move too fast and you will leave money on the table. Go to slow and you lose the opportunity to create value. Our carefully managed orderly liquidation starts with a recovery value analysis. Call us. We will be glad to discuss what is needed to provide you with a full cash flow budget that projects the net recovery of what you will realize from the sale of your company’s assets.