Distressed Company Advisory

Often the investment banker is called into a Company that is hemorrhaging for many reasons, which may include:

  • Product obsolescence, leading to severe decline in revenues and market share
  • Competition that has an advantage of product quality, manufacturing or marketing cost
  • Management errors or inattentiveness to conditions in the market, customer relations, bank relations, etc. which have led to losses and unstable balance sheet conditions

Grand Avenue Capital Partners has experience in assisting the troubled company, particularly in selling the entity. While similar to sell-side engagements, the sale of the troubled company is generally accelerated for a number of reasons:

  • Cash flow is severely strained
  • Lender and creditor pressure increases the strain on the company and its owners
  • Knowledge of the troubled company situation in the marketplace exacerbates the potential downward spiral of the entity

Time for effective action is absolutely critical in salvaging value for all the stakeholders of the troubled company: shareholders, creditors, customers, and employees.

Grand Avenue’s involvement starts with a realistic assessment of the distressed company’s current and projected performance. Shareholders must agree that the sale of the entity is the effective response to the financial distress the entity is experiencing.