MCA Financial Group played a pivotal role as the financial advisor to the shareholders of a prominent manufacturer specializing in consumer outdoor equipment sold through large retail and online channels. With 800 employees, annual revenue totaling $500 million, and robust international sales, the company faced supply chain and market disruptions due to the COVID-19 pandemic.
MCA Financial Group was retained as the Restructuring Advisor and carefully evaluated an offer from a strategic buyer that the company had already received. The offer, which primarily focused on repaying the secured lender, lacked substantial benefits for the shareholders. With the secured lender owed over $140 million and a pressing need for a swift resolution, MCA’s strategic thinking and quick action were instrumental in recognizing the need for a prompt and comprehensive assessment.
MCA Financial Group delved into financial projections and market analysis, providing a comprehensive evaluation of strategic options for the shareholders. These options encompassed intricate refinancing arrangements, minority interest sales, and a complete company sale. MCA created a competitive negotiation environment, positioning our client more favorably to secure a revised strategic offer, which included additional cash for shareholders at closing and an enhanced earn out opportunity.
MCA Financial’s effective communication, transparency, and accurate data are critical to the restructuring process. Collaboratively, MCA’s team worked with the legal teams, the bank group, and the investment banks throughout the engagement. Regular transaction updates extended the timeline, enabling the company to finalize transactions beneficial to shareholders and lenders. Along with prioritizing our client’s interests, we delivered candid feedback on strategy and risk, providing our client with the information needed.
MCA’s expertise in business valuation, distressed mergers and acquisitions, and corporate finance proved instrumental in guiding our advisory efforts for this engagement. MCA Financial Group’s strategic guidance and dedication to client-centric solutions were fundamental in navigating a complex restructuring scenario, ultimately maximizing shareholder value amidst challenging circumstances.
For turn-around and restructuring, distressed M&A, and company advisory solutions tailored to your organization’s needs, contact MCA Financial Group today.