Business Wind-Down/Liquidation or Asset Disposition
Sometimes it is unavoidable – a company must be liquidated. Properly devising and executing the wind-down plan can preserve value and increase the recovery to all stakeholders.
We have extensive experience with various strategies that preserve value, as well as experience dealing with all the parties involved. For example, should an out-of-court solution such as an assignment for the benefit of creditors be utilized to minimize the costs and the number of parties involved? Does the situation merit a liquidating Chapter 11 plan? How should hard assets be sold – individually or bundled with a product line? Is an auction the right strategy? LMG can answer these questions to create and execute plans to achieve superior results.
Common situations in which a liquidation of a company may be necessary:
- The company's operations are inefficient or unprofitable and the capital investment required to be competitive is prohibitive.
- Revenue has declined due to industry overcapacity or pricing pressure and the company doesn't have the capital reserves needed to survive.
- Changes in the market have eliminated the company's strategic advantage and ownership is unwilling or unable to make the changes required to reposition the company.
- Family or shareholder disputes have paralyzed the business and the opposing parties are unable to come to terms on a buyout plan.
- Secured creditors have taken possession of their collateral.
Case Studies:
Lighthouse Services
