Based on a recommendation from the company’s secured lender, MCA stepped in as Chief Restructuring Officer and Sell-Side M&A Advisor to a Florida-based manufacturer of personal mobility devices.
With annual revenue of $35MM and strong profitability over 35 years in business, a storm of factors created a cash-flow crunch for the company: changes to Medicare curtailed reimbursements, the pandemic prompted decreased doctor visits and device prescriptions, and supply chain issues ensued. The CEO resigned, and the PE firm sought an exit after long-term ownership.
The shareholders decided to restructure and sell the company.
MCA worked with management to stabilize cash flow, navigate complex supply chain and market conditions, and set a path for a successful sale process. Expenses were scaled down through strategic staff and operating expense reductions. And as the company began working within a feasible range, the lender resumed its support.
MCA expertly drove the sale process forward while attentively overseeing the business together with management. Competing offers were vetted by strategic buyers, and the company was sold, exceeding the Seller’s expectations.