This New Jersey based Over-The-Counter (OTC) contract pharmaceutical manufacturer was in Chapter 11 and shut down because it could not generate enough cash flow to fund operations.
Liquidation value was estimated to be approximately $500,000 because the equipment was old and the inventory of raw materials was suspect.
Equity Partners was retained to sell the assets of the business.
Believing that the business could still be salvaged as a going concern, Equity Partners teamed with management to hold the business together while it conducted a broad, intensive, exhaustive marketing process. 79 companies looked at the opportunity and 21 conducted due diligence. Those efforts resulted in a closing for $2.6 million just 10 weeks after Equity Partners accepted the assignment. Medico’s management received employment offers and the company restarted operations.