The Client

Arlington Machine and Tool Company

A 52 year old family owned and operated precision machine shop in New Jersey.

The Challenge

The Company served an impressive list of customers, including Boeing, Lockheed Martin, and Sikorsky, but had been negatively impacted by a divestiture that took too long and cost too much to complete. A decline in sales and an inadvertent overstatement on the inventory report had caused the lender to limit funding.

The Process

Equity Partners was retained and quickly completed an exhaustive marketing process and identified multiple groups that were interested in purchasing the Company.

The Solution

Ultimately a superior offer from a private equity group that could close quickly was accepted. Additional challenges regarding substantial tax implications to the owners were mitigated and the sale transaction closed providing a great recovery for creditors and continued employment for ownership. Operations continued with a substantial new equity investment which allowed the company to grow.