Hardware/software company: automation industry

Background Kirchner and Company was contacted by a VC to liquidate the company and return debenture value Company had failed to reach revenue forecast No customers had emerged from the pipeline Investor had lost faith in the management team Activities Provided an assessment and report to the VC: Determined the company could be packaged differently…

Background

  • Kirchner and Company was contacted by a VC to liquidate the company and return debenture value
  • Company had failed to reach revenue forecast
  • No customers had emerged from the pipeline
  • Investor had lost faith in the management team

Activities

  • Provided an assessment and report to the VC:
    • Determined the company could be packaged differently
    • Operations could be fine tuned re: strategic direction and cost control
  • Acted as an intermediary to arrange bridge financing
  • Provided an interim co-CEO
  • Became the M&A agent
  • Was able to attract several interested parties including the ultimate buyer, which was a multibillion-dollar industry leader
  • Prepared three documents on various aspects of the value proposition – each resulted in a higher bid

Results

  • Company was sold as going concern and all jobs retained
  • Achieved a 3x return on investment for the shareholder in less than one year of involvement
  • Company has now been scaled up three fold