Transaction:
Automotive Aftermarket Manufacturer
Ensured the preservation of entities, maintained employment for majority of employees, and created significant potential for post-sale growth.
A leading aftermarket manufacturer for the automotive industry faced a critical financial challenge due to the loss of a major contract with General Motors, which resulted in over 50% revenue loss. Despite restructuring and pivoting to an e-commerce model, the company needed additional investment to sustain profitability and avoid liquidation.
Our Approach
Conducted a thorough valuation analysis and determined that breaking company into separate business units would maximize value and market appeal.
Investment Banking team restructured the company into three individual business units to appeal to multiple buyers.
Assessed client's financial health and market position.
Streamlined processes and segmented accounting structures for individual business units.
Quickly recast financials and market communications to reflect potential multiple transactions.
Ensured business continuity throughout the transaction process.
Outcomes
Transaction successfully concluded with large corporation with strategic interests acquiring the Wholesale Distribution and Custom Manufacturing Services Business Units, and private investors acquiring ISS Automotive.
Increased total sales significantly, and gross margins improved.
Virtually all employee positions were preserved, and creditors received the maximum available payback.
The dual-sale strategy ensured the preservation of going concern value for both entities, maintained employment for virtually all employees, and created significant potential for post-sale growth.
Services & Roles
M&A Advisory
Special Situation Advisory
Strategic Assessment
*Some engagements may have been performed by team prior to joining Harney Capital.
