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