Top Air, Inc. dba Top Air, Better Built & Parker Wagons
Industry
Agriculture Equipment Manufacturing
Size
$65 million
Expertise
Recovery and Sale of Assets/Company
Assignment
A leading manufacturer of agricultural equipment with multiple Midwest facilities and a strong dealer network was struggling in a highly price competitive market with a high debt load. The debt load had been incurred through the completion of several acquisitions, all of which were not successful.
Actions
MainStream completed a recovery valuation analysis providing the secured creditors with a clear set of expectations on total dollars recovered as well as an operating budget and timeline for the entire project.
MainStream identified buyers for the trade names, patents, customer list’ and other intangible and intellectual property. Working in concert with the lenders, we negotiated the sale of all remaining inventory, collected the accounts receivable, and managed the auction of the manufacturing and office equipment.
Results
MainStream collected approximately 65% of the receivables and sold nearly 85% of the inventory at a combined 28% gross profit margin in the first sixty days. In a parallel effort, our team completed the sale of the trade names, remaining inventory and receivables to a larger farm implement company whose strategy was to broaden their product offerings and increase their dealer network. The entire project was completed and closed in 90 days. The net recovery provided by MainStream was approximately 23% higher than the secured lenders had originally anticipated. This increase in value allowed the secured lenders to get out whole with a remaining balance returned to the shareholders.