Investment Bankers

Often distressed companies that are otherwise candidates for acquisition are burdened with debt, making them unattractive to many potential buyers. 

The Hamer Group assists investment bankers and their clients with a method to acquire insolvent or highly distressed businesses

  • Without the business resorting to bankruptcy

  • Without the acquiring entity also acquiring the debt

If you have a client considering such an acquisition, you should call us.  We will be pleased to perform a confidential analysis and review.  

The case study below is quite typical of these situations.

Case Study
Software Company

The company, founded in 1995, was in the business of developing and selling  software, services, and training.  The main operations were in California with a subsidiary overseas.

In 1997 the company began experiencing cash flow problems  and in 1998 underwent a restructuring program that included a new senior management team and a new board of directors. 

The board made an unsuccessful attempt to secure a strategic partner or a merger candidate to resolve the operating difficulties.  Potential buyers were not interested because of the company’s considerable debt.

As a result of the Company’s significant liabilities and pending litigation, the Company considered seeking protection under the United States Bankruptcy Code, but decided against this because of the substantial expense.  

The company's management evaluated its options and decided to liquidate under a General Assignment for the Benefit of Creditors.

The Hamer Group accepted the assignment with the intention of selling the business as a going concern. 

In order to preserve the integrity of the assets and going concern value, it was essential that the assets be sold immediately, without delay. 

Failure to consummate a sale would have undoubtedly caused a foreclosure by the secured parties and the loss of value available to pay unsecured creditors.  

Prior to the assignment, we advertised the business assets for sale as a whole and contacted potential buyers who had earlier expressed an interest. Subsequently, these buyers submitted bids at auction conducted on behalf of us as the Assignee.

We sold all of the assignment estate's interest in the assets of the company, including furniture, fixtures and equipment, accounts receivable, contracts, trademarks, patents, as well as other tangible and intangible assets to the successful buyer.

Finally we were able to include overseas assets as part of the purchase which was a deal maker for the successful buyer.

From start to finish this process took less than two weeks.

This kind of situation has proven to be of considerable interest to investors, and in particular to Investment Bankers.  

 

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