A direct mail printer suffered significant revenue declines from $65 million to $20 million over a four year period as direct marketing expenditures across all industries were cut and redirected to newer media. A multi-million dollar investment in new equipment, acquired in anticipation of potential work under a new business model which would take several years to develop, proved to be ill-timed and severely impacted the company’s viability.

Under pressure from the senior lender to exit the credit, Kinsella Group was engaged to stabilize the business and then move to market.  Within 60 days of engagement, headcounts were dramatically reduced, expenses slashed, cash flows turned to positive and the lender extended its forbearance agreement.

Kinsella Group conducted a focused sale of the Company’s core product line.  The buyer, a division of a global corporation, acquired a package of new customers and unique equipment and processes, creating new opportunities.  The sale generated cash to retire bank debt, consulting and non-compete agreements for the majority owners, and allowed for liquidation of other assets of lesser value.

Kinsella Group’s long history of turnaround and restructuring work has equipped us with the unique skills required to identify opportunities in challenged situations, where a value on sale well in excess of a “multiple of adjusted ebitda” or “net liquidation value” can often be obtained.