Our seasoned dealmakers provide a full spectrum of analytical and consulting services to help plan for and execute transformative transactions. SCP employs a hands-on approach to ensure all bases are covered from start to finish.
Transaction Advisory Services
Support C-Suite executives on strategic initiatives, and help ensure goals are executable and supported by all key stakeholders
Structure and negotiate transactions with various capital sources
Manage key projects through the duration of a transaction
Provide comprehensive analytical M&A support, and work with bankers to ensure structural concepts and valuation metrics are aligned with management goals
Coordinate due diligence and other activities related to finalizing a transaction
Implement post-merger integration processes, such as 100-day planning
SCP’s team of former bankers draws upon years of experience in optimizing companies’ balance sheet structures to guide finance executives through complex capital raises and restructurings.
Debt Capital Solutions
Provide comprehensive solutions to balance sheet restructurings, both in- and out-of-court
Structure and execute refinancing transactions, including ABL, term debt, equipment loans and unsecured vendor liabilities
Lead negotiations with existing and potential new lenders across the capital stack
Advise on latest trends and activities in credit markets
Assist in the preparation of confidential offering materials and other documentation to attract new capital
An $86 million non-emergency medical transportation company headquartered in California with operations throughout the country got into a billing dispute with its largest customer.
The dispute led to:
Defaulting on the bank loan covenants;
Missed revenue and EBITDA targets;
Two restatements of previously issued financials;
The bank’s lost confidence in the management team;
The bank’s request for personal guarantees from the owners (which weren’t provided); and
The downgrading and transferring of the credit to the bank’s Special Assets group with the intent to exit the relationship.
SCP was engaged to assist the debtor in its communications with the bank, to develop sound and achievable forecast and turnaround plans, and to find a non-bank lender for the company.
SCP professionals aggressively reviewed the company's ongoing monthly financial statements to validate their accuracy and evaluated the company's operational turnaround plan.
SCP professionals assumed the lead role in communicating with both the bank’s Relationship and Special Assets teams in profiling the company's operations, financial reporting and negotiating forbearance terms.
Advised the company on crafting a financial forecast that would rebuild credibility with the bank and create a track record of solid financial performance that would appeal to the lending markets. Engaged SCP's own capital markets capabilities to explore refinancing opportunities.
The forecast resulted in the company achieving 6 consecutive months of strong operating performance with a positive EBITDA gain of $1.7 million over the six prior months.
The track record of strong operating performance led to a $12 million refinancing that successfully paid off the bank loan, provided additional liquidity to the company and didn't require personal guarantees from the owners.
The company was able to retain its deposit accounts with the bank and continue receiving general banking services.
This fast-fashion retailer with 54 brick & mortar stores and an e-commerce business had been administratively insolvent, but no one would convert the case.
The Company was unwilling and unable to pay administrative expenses (rent, payroll, etc.).
Additionally, there were allegations of fraud and deceit with respect to budget and DIP Order.
SCP worked with management to pay post-petition fees and get an employment application approved by the bankruptcy court.
These efforts allowed the Company to avoid litigation
SCP also found outside support for the monetization of asset sales and insurance claims.
SCP provided the Company with GOB sale prep & support and aided in the Chapter 11 filing.
American Space Technology Company
American space technology company that was developing rockets and satellite computing technology to launch small vehicles and satellites into orbit.
The Company unexpectedly lost the support of its key equity sponsor and its CEO resigned, spooking the investor community and hurting the Company’s effort to raise additional capital.
Additionally, there were allegations of fraud and deceit with respect to budget and DIP Order.An SCP professional was engaged to evaluate the Company’s financial and operational condition and evaluate strategic initiatives focused on reorganizing the Company.
Prepared the Company for a Chapter 11 filing and performed the various necessary activities during the case including, financial reporting requirements of the UST, manage cash in accordance with the DIP order, evaluate bids received, prepare analyses required for prospective buyers, and prepare for and participate in court hearings.
Managed the sale process including preparing a confidential information memorandum, coordinated and populated the data room, identified a list of potential buyers, coordinated site visits, and solicited competitive offers from buyers.
Successfully sold off the various assets of the Company through two Bankruptcy Court approved sales and managed the Company’s entire Chapter 11 process.
Operates as a broadband network and switching infrastructure that accommodates the deployment of voice, video, and data services in Michigan.
After an adverse ruling by the FCC regarding a rate dispute with AT&T and subsequent continued litigation, the company experienced significant cash flow issues which culminated in the breakup of the Company and the sale of the Company’s assets in conjunction with a bankruptcy filing.
As Advisor to the existing senior secured lender, SCP worked with the company to ensure adequate liquidity throughout the sales process while minimizing the capital at risk for the lender.
After extensive analysis and revision of the Company’s cash receipts forecast to reflect the Company’s adjusted run rate, SCP was able to identify additional cash receipts.
Through close examination and scrutiny of the proposed sales and regulatory approval process, SCP identified time savings which directly resulted in cost savings.
Through aggressive cash management, combined with the recommended shortened sale and regulatory approval process, SCP recommended a reduction in the DIP by ~55%.
The Company was sold in short order, with no interruption of service to customers.
The sale proceeds, combined with negotiated reimbursements, would allow the lender to receive a full recovery.
Confidential Aerospace/Defense Metal Fabrication Company
Privately-owned precision metal fabrication company that manufactures components for aerospace, defense, and energy industries with customers including Boeing, Sikorsky, SpaceX, and Solar Turbines. The company had a stalled sales process aftermarket challenges and management inexperience with forecasting and comprehensive due diligence process with sophisticated buyers.
Company had ~$35 million of revenue and consistent ~20% EBITDA margins in 2019. In late 2020, the Company initiated a sales process after its major shareholder and chairman passed away. The Company’s management team consisted of lifelong employees that worked their way up from the factory floor to the C-suite. While this instilled significant tribal knowledge essential to the company’s success, the record-keeping and business analytics lacked the sophistication necessary to make it through the rigorous due diligence process required to achieve a successful sale.
SCP was brought in to support the Company’s management team through a complex due diligence and sale process.
Working closely with the Chief Executive Officer, Chief Financial Officer, and VP of Operations, SCP developed forecasting tools and metrics to help the Company stay on track during the sales process and provide interested parties with appropriately detailed insights into the company’s performance. This included a comprehensive forecast model with weekly, monthly and quarterly tracking. SCP also provided in-depth analysis revenue recognition, job costing, WIP, expense timing, and inventory as part of its due diligence materials to potential buyers. SCP represented the company and management through the due diligence process, including management presentations, Q&A and exclusivity diligence with the final buyer.
The Company is expected to close on a successful sale to a publicly-traded strategic buyer for $44 million.
The board, management team, investment banker, and buyer all stated that the transaction could not have occurred without SCP’s efforts throughout the sale process.
Throughout the process, SCP enabled the Company’s management team to focus on operating the company while SCP led the due diligence responses, while also providing tools and insights to improve performance which resulted in a successful sale.
Moreover, through the development of tools and providing guidance in business planning and forecasting, SCP catalyzed growth through proactive, informed decision-making through the unpredictable shifts caused by the pandemic.