The manufacturer experienced a dramatic decrease in volume stemming from the telecom industry crash in the early 2000’s. Fort Dearborn was engaged to improve profitability and assess the Company’s strategic options.
FDP identified and initiated a number of profit improvement and cost reduction measures to stabilize the business including: a price increase, plant shutdowns and a reduction in force. These actions resulted in the Company generating positive income from operations.
Fort Dearborn assessed the viability of the business, preparing multiple-case scenarios, and determined that a sale/wind-down strategy would provide the most benefit to all stakeholders. This effort allowed ownership to make a timely decision that ultimately led to maximizing value as the Company was marketed for sale while operations were stable.
FDP was the Company’s exclusive financial advisor and coordinated all aspects of the expedited sale process including: preparing the information memorandum and related financial analyses; identifying the best fit strategic buyer; negotiating the LOI’s and APA’s for both the U.S. and Mexican operating companies.
After closing the transactions, FDP effectively managed the wind-down of the estate and day-to-day operations after the departure of the President, CFO and Controller. Fort Dearborn also prepared communications and negotiated with creditors in order to avoid bankruptcy and minimize wind-down costs including the successful settlement of a claim for business damages filed by a key customer.