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    Exit Strategies

    Home > Practice Areas > Exit Strategies

    reorganization

    • If problems can be isolated and prompt action taken, the business may be reorganized successfully as a “stand-alone” entity. Chapter 9 of the Bankruptcy Code likewise affords public entities the prospect of “rehabilitation.”

     

    • Successful reorganization depends on identifying
      • potentially profitable operations;
      • available financing;
      • organizational resources; and
      • the cost of achieving a “turn-around.”

     

    • South Bay Law Firm’s unique combination of legal experience and very light administrative overhead offers clients informed, focused, and cost-effective analysis – and action.

    Sales Spin-Off

     

    • Frequently, it is preferable to preserve the value of a business through a sale of some or all of its divisions, lines of business, or specific assets.

     

    • The viability of a sale or spin-off depends on:
      • the existence of one or more buyers or merger candidates;
      • the availability of sufficient capital and the right acquisition structure; 
      • sufficient value creation for creditors from the transaction.

     

    • South Bay Law Firm is able to partner effectively with the firm’s existing professionals – or with its own strategic network of insolvency professionals – to evaluate, negotiate, and execute on a successful sale strategy for the troubled business.

    liquidation

    • Often, the value of an insolvent business is maximized by simply reducing its assets to cash as quickly and efficiently as possible.

     

    • In these cases, the troubled business will seek liquidation through a going-out-of-business sale, public auction, private bulk sale to a liquidator, negotiated sale to a third party that will carry on part of the debtor’s business, or transfers of assets to creditors in satisfaction of all or part of their claims.

     

    • When a liquidation must be pursued, South Bay Law Firm is able to act quickly and cost-effectively to negotiate and document the best liquidation structure possible.