Acquiring a company that has a large amount of debt, solutions?
There's a company that is looking to be acquired. The company is in a very niche market, has a decent amount of market share, high sales but operational inefficiencies, large amount of debt and high interest payments. If the company is acquired, what could be some possible solutions to the large amount of debt?
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Recently got involved in two turnarounds. We reorganized the debt to give the companies runway back to profitability and then injected cash/equity to give the companies the cash needed to execute on ops changes to become profitable again.
Almost all creditors are willing to play ball when a reputable firm gets involved and shows them how being willing to be a bit more patient will get them their cash back. Also helps that they end up making more money too.
Also read distressed debt analysis by Moyers. Cool book and pretty punchy. No bullshit/fluff imo
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