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Exit Strategies

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 REORGANIZATION

If specific problems can be isolated and action promptly taken, a business may be successfully reorganized 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
  • Cost of achieving a turnaround

 

South Bay Law Firm’s unique combination of legal experience, strategic relationships, and very light administrative overhead offers clients informed, focused, and cost-effective analysis and action for a successful reorganization.

 SALE / SPIN-OFF

Selling some or all of the divisions of a business, lines of business, or discreet assets is frequently the preferred method of preserving the business’ value.

 

The viability of a sale or spin-off depends on:

 

  • Existence of one or more buyers or merger candidates
  • Availability of sufficient capital and the right acquisition structure
  • Sufficient value creation for creditors from the transaction

 

South Bay Law Firm has the expertise to partner effectively with a client’s existing professionals – or, at the client’s request, with our own strategic network of insolvency professionals – to evaluate, negotiate, and execute a successful sale strategy.

 LIQUIDATION

The value of an insolvent business is often best realized by simply reducing its assets to cash as quickly and efficiently as possible. Paths to liquidation include:

 

  • 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
  • Transfers of assets to creditors in satisfaction of all or part of their claims

 

When a liquidation is a client’s best option, South Bay Law Firm will act quickly and cost-effectively in negotiating and documenting the most optimal liquidation structure possible on the client’s behalf.