The Client

Cosmos Granite and Marble Central

This Midwest division of a larger family-owned business had branches in Chicago and St. Louis and was undergoing a partnership dispute and a recent decline in sales.

The Challenge

Sales had dropped by 20% and the value of the business was declining rapidly. Litigation had already led to a breakup of the parent entity and, due to financial limitations, the manager of this division could not buy the division on his own.

The Process

The business was put into a Receivership and Equity Partners was hired by the Receiver and immediately went to market looking for a buyer for the division. Within 45 days, EP created sufficient interest to hold a lively auction for the business. Four buyers participated in the auction.

The Solution

Equity Partners ran an auction of going concern bidders and, following 16 rounds of bids, the business was sold for nearly two times the original bid. The secured debt was paid in full, most liabilities were assumed, and the business continues to operate today.