United Support Solutions, Inc.
A 35 year old family owned and operated precision fabrication, machining, and finishing shop in NJ.
The Company had grown to $15 million in annual revenue which positioned them to successfully win a five year, $37.4 million government contract. Unfortunately, after investing close to a million dollars for the startup, sequestration hit and the contract was pulled. This led to a significant cash constraint, and combined with a reduction in revenue, it became untenable for the Company to continue operations under its existing debt structure and filed.
Prior to the filing, the Company had been exploring options to partner with another group or sell the business. An offer was obtained, but without subjecting it to a market test to prove whether it was the best option available, the creditors were unwilling to agree to the sale. Equity Partners was retained and given 30 days to market the business to either find a competing bid or prove the initial bid was the highest and best offer available.
After completing an exhaustive marketing process, Equity Partners negotiated a qualifying bid in excess of the existing bid and conducted an auction between the two groups. After active bidding and an increase of 41% to the initial bid, the competing bidder was deemed the highest and best bid. The bankruptcy court approved the sale and closing occurred two weeks later, ensuring going concern value was retained and recovery for the estate was maximized. The offer maintained operations in place and provided continued employment for over 60 people including ownership.