Hilco Commercial provides a suite of services to assist businesses, private equity sponsors, corporate financiers and lenders.
Hilco can enable existing management to acquire a distressed company. Due to the rapid provision of investment and instant access to our senior management, we can execute a consensual deal very quickly. Where the current management teams have a passion for their business, we want to get involved.
Acquiring under-performing and non-core businesses or divisions
A poorly performing division will have a detrimental effect on the overall business and worsen its financial performance. When Hilco acquires any underperforming part of a business, it shelters the core business from any adverse effects and relieves senior management from the burden of managing a difficult portion of its business. Ultimately, Hilco enables management to refocus its efforts on the group’s core activities.
A poorly performing division will have a detrimental effect on the overall business and worsen its financial performance. When Hilco acquires any underperforming part of a business, it shelters the core business from any adverse effects and relieves senior management from the burden of managing a difficult portion of its business. Ultimately, Hilco enables management to refocus its efforts on the group’s core activities.
Sharing the “upside”
In a financially distressed situation stakeholders are often concerned by the lack of clarity as to the likely potential outcome. Professional advisors often give a range of outcomes, but are rarely prepared to give definitive advice as to the most likely outcome. This is where Hilco can help. We will often buy a position, thus guaranteeing the outcome. However, as part of the agreement we are happy to share the potential upsides that result from our restructuring expertise. This can apply to management, where we can put in place a phased transfer of equity, or a Lender, where we can share the potential gains that arise from acquiring a position in distress.
Hilco believe that there are times when a distressed business just needs a helping hand, and that is where we come in. Our highly skilled and experienced Restructuring Officers (RO’s) are able to steer fundamental change however deeply troubled the company. We work alongside board members to bring to fruition a successful turnaround strategy.
If a business is in difficulty, or already subject to an insolvency procedure, our operational teams can implement agreed solutions. We can often provide additional working capital funding to ensure the restructuring project is completed with the maximum return to the client.
Providing finance for acquisitions and working capital
By taking ownership of non-core assets, Hilco’s financial strength enables us to partner with private equity funds or purchasers in the acquisition of businesses. In the acquisition of a business or multi-site group, the purchaser may not want to acquire all of the sites or all of the divisions contained within the group.
Implementing cost reduction plans
A well-managed site closure programme can help a business build a stronger brand and drive further sales. Our people have a proven track record of demonstrating our operational expertise to manage the entire exit process. We can help to generate maximum returns, eliminate the financial risks and allow management to focus on the core business. We can also take care of the sale of the non-core business.
Purchasing distressed debt positions
If a Lender believes that the risks of continuing to extend a debt facility are too great, Hilco can provide a viable solution. We can make an up-front cash payment to acquire the debt and the related security positions, which may exceed the Lender’s assessment of likely recoveries.
Providing finance for acquisitions and working capital
By taking ownership of non-core assets, Hilco’s financial strength enables us to partner with private equity funds or purchasers in the acquisition of businesses. In the acquisition of a business or multi-site group, the purchaser may not want to acquire all of the sites or all of the divisions contained within the group.
Implementing cost reduction plans
A well-managed site closure programme can help a business build a stronger brand and drive further sales. Our people have a proven track record of demonstrating our operational expertise to manage the entire exit process. We can help to generate maximum returns, eliminate the financial risks and allow management to focus on the core business. We can also take care of the sale of the non-core business.
Purchasing distressed debt positions
If a Lender believes that the risks of continuing to extend a debt facility are too great, Hilco can provide a viable solution. We can make an up-front cash payment to acquire the debt and the related security positions, which may exceed the Lender’s assessment of likely recoveries.
Private equity investment
If a private equity group is seeking to acquire a business we can act as a full partner on the transaction providing both funding and the expertise in the operation of the business, where required. Alternatively, a private equity group may have acquired a business with subsidiaries or assets that are not central to the transaction. In this case, we can acquire those assets and facilitate a successful acquisition.
If a private equity group is seeking to acquire a business we can act as a full partner on the transaction providing both funding and the expertise in the operation of the business, where required. Alternatively, a private equity group may have acquired a business with subsidiaries or assets that are not central to the transaction. In this case, we can acquire those assets and facilitate a successful acquisition.