Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreThe client was a Clinical Stage Pharmaceutical Company with a promising cancer drug in Phase III testing before the Food & Drug Administration (FDA), based in Pennsylvania.
The Company raised more than $57 million of capital over a six-year period, and when our team was engaged in early 2003 had less than $3 million of cash remaining. The Company had recently withdrawn its registration statement for an IPO due to unfavorable market conditions and had been otherwise unsuccessful in attracting new capital or finalizing any licensing arrangements.
Our experts assisted with the right-sizing of the business and negotiated with a variety of suppliers and creditors to conserve cash. J.S. Held also assisted with the identification of potential purchasers and investors, and the negotiation and structuring of a pre-petition loan, stalking horse bid, and DIP loan from a publicly-traded pharmaceutical company. The offer consisted of $2.0 million of cash and potential future consideration based on licensing deals and achievement of certain sales thresholds that, based on a Monte Carlo simulation, had an additional net present value of $16.7 million. We helped develop the bidding and auction procedures and coordinated communication with 400+ potential purchasers. Two additional bids were received.
After 42 rounds of bidding, a winning bidder was selected with a bid that consisted of $7.5 million of cash and future consideration with an estimated additional NPV of $54.1 million. This 363 sale was consummated about 7 weeks after the Company filed its bankruptcy petition. Through our efforts, the value achieved for the unsecured creditors increased almost threefold from a cash perspective
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
> Bankruptcy Advisory
Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees.
> Business / Operational Assessment
Most consulting firms approach a business assessment from a purely financial perspective — our assessments provide a 360° view of a business, addressing growth drivers, profitability, and uses of capital. Along with detailed financial performance reviews and cash flow forecasting, our comprehensive Business / Operational Assessment identifies the various challenges clients encounter throughout their operations.