Type:
Debt restructuring and M&A transaction

Areas Involved:
Financial Advisory, Corporate Advisory

The company:
The activity of the company focused on the manufacture and marketing of biotechnology products.

The company was fully owned by a single shareholder which along with a highly professional team, concentrated its activity on I+R+D identifying over 3.000 different potential strains and developing diverse relevant patents.

The company had invested heavily in investigation, but lacked the proper sales development and therefore, was in severe lack of cash and getting to a point were it would be unable to repay the debt.

How we helped:
As for strategic consultancy, main areas involved where, governance, regulatory affairs and strategic planning.

As for financial advisory, we renegotiated the debt in front of a banking pull of 12 entities successfully. A new term was established with a bank grace period of about 18 months, for the company to push on sales and recover.

Shareholder instructed us to initiate an M&A transaction process on a full cash out, but the entity value was drained by the highly leveraged condition.

We proposed to initiate the process on a scheme where a banking debt write-off was mandatory. However, no write off could be triggered until we had an investor and a “conditioned to the debt write off” offer.
We presented the opportunity to several Industrial players to finally agree with one of the largest Industry multinationals who had been acquired by an Institutional Investor and was on a buildup process.

M&A challenges:

• • • Debt restructuring
    • Debt write-off
    • Risk mitigation & warranty mechanism establishment
    • Entity value turn around.