A 40 year old Michigan-based machine shop which specialized in producing drive-train, steering components and assemblies for heavy trucks and construction and material handling equipment.
With sales declining from over $40 million, the company was losing money and in default on its secured loan. They also lacked working capital to take on and win new business.
Equity Partners was retained and conducted an exhaustive marketing process. Through our process, over 100 companies signed confidentiality agreements and considered investing in or acquiring the business.
Following in-depth negotiations on behalf of the seller, Equity Partners was able to put together a transaction through which all of the secured debt was paid in full, the seller was released from all personal guarantees, unsecured debts were assumed by the buyer, employees were retained, and now properly capitalized, the company continues to operate today.