MCA Financial Group assumed the role of Receiver for a software-as-a-service provider specializing in point-of-sale solutions for the restaurant, bar, and nightclub sectors. The company boasted a nationwide presence and annual revenues of $6 million, historically demonstrating robust transaction volumes and a diversified revenue stream encompassing software subscriptions, ongoing support, and credit card processing commissions. As unresolved disputes ensued between the company’s 50-50 partners, they jointly petitioned for the appointment of MCA as Receiver to manage the sale of the Company. MCA assumed operational control of the company and spearheaded the sale process.
Navigating the terrain of complex ownership disputes and facilitating the sale of distressed companies necessitates a meticulous approach grounded in expertise and diligence. Our initial actions entailed vetting a comprehensive list of financial and strategic buyers, conducting thorough due diligence, and preparing essential marketing materials. Upon finding that initial offers fell short of the partners’ expectations, a transition to an Auction and Sale phase commenced.
Throughout the Auction and Sale phase, MCA oversaw all facets of the sale, ensuring transparency, fairness, and compliance with legal requirements. Despite encountering unforeseen challenges, such as accounting discrepancies and outstanding tax liabilities, our team’s proficiency in financial analysis and deal structuring facilitated a successful resolution. MCA rigorously evaluated bids in line with bid requirements and identified one of the shareholder’s bids as the most favorable among those submitted at the Auction.
MCA prepared the sale memorandum and purchase agreement, which were jointly executed by the buyer and seller. MCA’s team then filed a Motion for Sale Order, confirming the Sale Memorandum, EPA, and related relief. Our intervention culminated in a mutually acceptable resolution that enabled both parties to part ways amicably.
Central to this successful outcome was MCA’s adept navigation of contentious disputes between shareholders, fostering an environment conducive to negotiation and resolution. Through frequent consultations and transparent communication, MCA financial facilitated an agreement that surpassed the expectations of the parties involved.
MCA Financial Group remains committed to providing expert guidance and support in navigating the intricacies of turnaround and restructuring initiatives.