After several unsuccessful attempts to sell, the lender installed Mr. Hundley as the Independent Manager, replacing the owner to maximize value through completing the sale of the business and overseeing the winddown of any remaining assets. .
Action:
- Strategic Sale: After an initial review of the business and the prior sale processes, initiated an accelerated sale process using the prior investment bank.
- Maintained Operational Continuity: Maintained uninterrupted service and regulatory compliance despite the CEO’s extended absence and the resignations by the COO and the General Manager of the hauling business.
- Regulatory & Stakeholder Coordination: Worked with state and local governments for permitting continuity and regulatory transitions
- Vendor Risk Mitigation: Negotiated a standstill with a key vendor whose threatened actions would damage the company and possibly forced a bankruptcy filing/closing the company
- Cash Flow Management: Revised the 13-week cash flow forecast to better reflect the actual cash flow and improve decision making
Outcome:
- Received five LOI’s and winning bid was a 20% premium over prior high. Winning bidder was a national, industry player that abstained from prior processes due to concerns over prior management
- Worked with the buyer to transition 90% of employees
- Successfully transitioned state permits and municipal contracts to Buyer
brief description
Appointed Independent Manager to Maximize Value of Distressed Waste Services Company
Industry: Industrials
