• Investment Banking
  • Mergers & Acquisitions
  • Financings
  • Capital Structure Optimization
  • Exit & Transaction Planning
• Financial Advisory
  • Valuations
  • Fairness & Solvency Opinions
  • Board Advisory
  • Dispute Services
• Restructuring Advisory
  • Loan Workouts & Debt Restructurings
  • Distressed Asset & Company Sales
  • Special Situations
• Wealth Advisory
  • Portfolio Analytics
  • Suitability Recommendations
  • Portfolio Monitoring

Distressed Asset and Company Sales

Distressed or troubled companies do not typically become so overnight. Much more frequently, the seeds of distress are present for years as secular or structural changes in the economy and the company's end-markets render its business model dated, or worse, obsolete. These more subtle, longer-term changes are often then exacerbated by a one-time event that pushes the company from “healthy” or “a going concern” to a distressed business facing rapid and serious questions about its ability to survive. These onetime events often include:

• • A slowdown in sales due to a cyclical downturn
  • Maturing debt obligations in an over-leveraged balance sheet
  • Covenant defaults
  • Loss of a key employee, customer or supplier
  • Health or life-style challenges of a key executive
• • Looking to sell your company?

This is typically a time of confusion and disbelief for the company's owners and executive team. Unfortunately, many company decision makers and their advisors ignore the longer-term secular and structural changes, often focusing all their energies on shorter term fixes. Commonly, these decision makers and their advisors can be heard saying “if we can just have more time”. The reality is that more time is not the answer. Allowing time to pass (in search of more time) in the hope that the secular or structural changes in the company's end markets will improve will only lead to further diminution in value. The only answer is rapidly using the time that is available to preserve as much value as possible. At HighBank, we believe it is our job to get all company stakeholders to stop hoping and start acting.

What are the benefits from a rapid assessment and the marketing of distressed companies or assets?

• Faster resolution of contentious and often litigious circumstances allowing stakeholders to “move on”
• Faster action will maximize the number of available options – time will quickly eliminate these options typically due to employee, customer, supplier or creditor defections. Once options are eliminated, bankruptcy and liquidation are inevitable
• Faster action allows for creative negotiations and structuring of alternative outcomes before a company's “back is against the wall”
• Faster action provides more time to communicate with adverse parties, which reduces the possibility of hostility, thereby allowing the company and its advisors a better chance to gain consensus on a course of action.

If you own, lead, manage or consult with a distressed business and want not only answers but answers to the right questions, then please call us.

We believe it's time for higher standards and results. Don't you?

Welcome to HighBank Separating Knowledge from Beliefs

To obtain a free copy of our Long Term Economic Thesis and Investment Outlook please email us at: knowledge@highbank.com