Class A Paint Solutions for US Motorcycle Industry

$40M Revenue

Company Overview

The Company provided complex, high-content, Class A paint solutions for the US motorcycle industry.

The Company was a 100% employee stock ownership plan (ESOP).

Engagement Overview

The Company had significant customer concentration, with a single customer representing over 80% of sales revenue.  The customer informed the client that they would be taking their work "in-house" in a few months' time.

FDP was engaged to explore strategic options for the Company

Our work involved evaluating the potential value and saleability of the Company while simultaneously developing and possibly implementing a plan for a wind-down and sale of the assets.

In the end, the decision was made to perform an orderly wind-down of the Company.

FDP prepared a detailed, orderly wind-down plan outlining key action steps and the responsible parties. FDP evaluated all options regarding asset realization, including the sale of the assets through an equipment auction, the sale of business segments, the sale of commercial real estate, the collection of accounts receivable, and the liquidation of inventory.

Solicited bids from equipment auctioneers and liquidators.  Hired a commercial real estate agent to sell the property.

Results

The Company's orderly wind-down allowed for the repayment of the bank's line of credit, the full payment of all vendors, and a significant return (over $5M) to the ESOP holders.

FDP News

Oct - 23

Max Bechtel and Austin Curtis join Fort Dearborn Partners

Please join us in welcoming the newest members of the Fort Dearborn Team, Max Bechtel and Austin Curtis.

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Apr - 23

Fort Dearborn advises Reliable Knitting Works

Fort Dearborn Partners served as the exclusive financial advisor for the refinancing of Reliable Knitting Works, a $125 Million Wisconsin-based Company.

Read More