Case Studies

Financial Advisor for Sale of HVAC Company

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·Financial Advisor for Sale of HVAC Company

The Situation

$25 million plumbing supply company and HVAC distributor. $5 million debt.

  • The company saw revenues drop 40% over a two-year period.
  • Gross margin dropped 4% due to inefficient purchasing.
  • Ineligible Accounts Receivable (A/R) reached 43% of the outstanding A/R balance.
  • $2.5 million in ownership investment was used up in a year to cover losses.
  • Forced liquidation values showed a 60% loss for the senior bank.
  • Negotiated sale of business almost derailed by competitors holding unsecured claims, filing an Involuntary Bankruptcy petition.

How We Advised

Our experts engaged initially as financial advisors, transitioned to interim management, and investment bankers.

  • Negotiated additional terms with key vendors.
  • Identified buyer, negotiated APA, and sale of the company.
  • The sale was conducted outside of bankruptcy, until forced into Bankruptcy proceedings and then sold through the §363 sale process.
  • $2.6 million in inventory was sold through a consignment plan, with the eventual buyer managing the process.
  • Overall recovery increased 100% over liquidation through sale and organized liquidation efforts.
  • The company avoided full liquidation, and 50 employees found employment with the new company.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value.

 

> Bankruptcy Advisory 
Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees. 

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