Strategic Business Group was initially engaged to assist management in creating meaningful financial statements and projections but the project quickly evolved into a classic reorganization. The companies were burdened by excessive debt, poor cost controls, nominal project controls, and had in excess of $900,000 in unpaid payroll taxes and penalties (a personal obligation of management).

The solution required a multi-faceted approach where SBG quickly created realistic financial statements along with near term sales and expense projections. Next we located potential acquirers and begin preliminary negotiations to determine their value of the company while developing a realistic evaluation of the market value of the assets. Simultaneously we conducted negotiations with lenders and taxing authorities to consider debt reduction options and repayment strategies.

Ultimately the companies were sold and our client received approximately $2,500,000. The lenders reduced their debts to facilitate the sale, and the taxing authorities accepted less than full reimbursement from the acquirer.