M&A Advisory

Revitalization of a Company under Civil Rehabilitation Utilizing M&A (Business Tranfer)

Result

  • Recovered from a Managerial Crisis caused by poor business performance and excessive borrowings!
  • Was able to maintain 100% employee retention!
  • The owner continues to thrive as the factory manager!

Company TypeG

  • Type of Business: Plastic Container Manufacturer
  • Business Scale: Business Scale:JPY 1,500M
  • Business Area: Tokai Region
  • Number of Employees: 40

Status of Business

  • Experienced a decrease in profit margin due to an increase in competition
  • High focus on quality improvement and traceability caused excessive capital investment resulting in excess borrowings
  • Required an idea to reduce costs to counter the price increase of raw materials
  • Faced difficulty independent reconstruction due to a decline in credit

Managerial Challenges

  • 出店増に伴う管理体制の整備が急務
  • M&Aの実行ノウハウがない
  • IPOを前提とした資本政策に未着手

Contents of Support
(Market Research, General Consultation)

  • Decline in profitability due to price competition and increase raw material costs
  • No longer capable of rescheduling repayment to financial institutions
  • Unable to operate properly due to a lack in cash inflow
  • The type of business requires continuous capital investment
  • Unable to make quick management decisions

Optius's Plus One!Sponsor Search and Support for Corporate Restructuring

  • Introducing lawyers experienced in civil rehabilitation law
  • Approached several sponsors and formulated a rehabilitation scheme
  • Created a liquidation balance sheet with a partner accountant
  • Thorough review of sales and general administrative expenses for rapid improvement in profitability
  • Created documents for lawyers and creditors
  • Arranged and facilitated creditor meetings
  • Support for negotiations with sponsors
  • Provided advice to maintain the dignity of the owner and motivation of the employees
  • Consideration for how to deal with long term clients

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