Phoenix serves as financial advisor and negotiates the sale of a broadcast equipment distributor to a strategic buyer.
Phoenix’s client was a $32 million distributor and importer of direct Broadcast Equipment and installation components based in Florida.
The Company grew at a tremendous rate along with the direct broadcast industry. Overexpansion and rising overhead costs created a liquidity crisis. With competitive forces eroding margins, the Company’s crisis peaked when suppliers began eliminating their ongoing trade credit support. Two other consulting firms were hired and both advised an immediate liquidation of the Company.
Phoenix rapidly took control of the Company’s situation and obtained the lender’s support for additional interim financing. Phoenix communicated the Company’s situation to all constituents, implemented a cash management plan, obtained new inventory through a third-party inventory process, and worked closely with the Company’s owner to identify potential buyers for the business. Phoenix negotiated and structured the sale of the majority of the Company’s assets to a public company that desired to expand into the DBS market. All of the Company’s secured parties were paid in full.
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