ABOUT THE COMPANY:
The Company is a manufacturer and distributor of premium home audio / video products. The Company’s core product categories include receivers, speakers, sound bars, and headphones. Since its 2011 acquisition by a financial sponsor, the Company has pursued an aggressive growth strategy through strategic acquisitions.
SITUATION:
Heading into the busy holiday season, the Company forecasted a significant working capital need, and a corresponding shortfall in liquidity. Operational changes would be required to preserve cash. In addition, external financing from stakeholders – including the financial sponsor, senior lenders, and junior lenders – was deemed to be necessary.
ENGAGEMENT:
G2 was engaged by the financial sponsor to lead an operational restructuring, as well as coordinate an external liquidity solution to overcome the anticipated cash shortfall. G2 implemented a series of cash management initiatives and worked with various stakeholders to evaluate the cash need, as well as develop and execute a mutually agreeable liquidity solution.
OUTCOME:
Working under a compressed timeline, G2 led negotiations between the financial sponsor, senior lenders, and junior lenders to reach a liquidity solution that provided the cash necessary to preserve liquidity through the holiday season’s large working capital build. A solution was reached among all stakeholders, which allowed the Company to obtain the necessary liquidity to continue operations uninterrupted. In addition, the adoption of operational initiatives allowed the Company to improve cash management and reduce overall costs.
DEAL TEAM:
TAGS:
Exclusive Restructuring Advisor
Technology & Business Services
Financial Restructuring
Operational Revitalization
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The Company engaged G2 as its Chief Restructuring Officer. Through the CRO, G2 developed and executed liquidity management tactics for the Company and its stakeholders.
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G2 conducted a rapid Phase 1 Assessment and developed a report that included an assessment of the business, operations, and financial condition of the Company, short-term liquidity, near-term capital requirements, and strategic alternatives.
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The Company engaged G2 to assist in building the long-term financial model, a 13-week cash flow forecast, facilitate negotiations between the Company, the sponsor, and the lender group.
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G2 was engaged to complete a Phase 1 assessment of the Company’s financial forecasts and its ability to return to pre-COVID levels of financial performance.
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G2 conducted a Phase I Assessment focused on liquidity and cash flow management assessment, business and operational strategy review, refinancing options, and strategic alternatives.
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G2 worked alongside creditors and management to develop a Phase 1 Assessment. G2 advised the lenders with respect to the financial position of the Company.
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