Assets in Receivership Valued for Auction Bidders

Situation - Private Equity Team Required Asset Valuation

A Private Equity firm was interested in a distressed asset in Chapter 11 and was going auctioned through the Section 363 process. The firms initial offer was rejected and they lost the initial right to be considered the stalking horse bidder and all the advantages associated with that position. They needed help in fine-tuning the value of the asset.

Solution - Operating Perspective Results Competitive Bid:

Capto was engaged was quickly able to provide the operating perspective the deal team lacked.  We worked closely with the company management and the deal team to identify key areas of opportunity and outlined key risk factors. Through our efforts, the Private Equity firm was able to convince their investment board to increase the funding available by $20M. At the 363 sale, Capto was part of the team facilitating real time decision throughout the bidding. 

In the end, the Private Equity firm was outbid for the assets by the only operating company that participated in the auction. Although they did not win the deal, they felt that Capto was a significant contributor to the team and allowed them to make a more informed bid with lower financial risk.