| ©2009 Kinsella Group, Inc. |
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As a result of significant financial losses and its default on a number of loan covenants, a $15-million designer and fabricator of specialty equipment, grain silos and dust-collection equipment for the grain-handling industry had been transferred to the workout section of its bank. Given the company’s inadequate financial controls and partially implemented MRP software, which was masking significant inventory and production problems, the bank was pressing for liquidation.
The company turned to Kinsella Group for assistance. After restaffing the controllership function, completing the implementation of the MRP software, and renegotiating the loan agreement with the bank, the client was returned to profitability. However, given continuing difficulties in the industries served by the client, Kinsella Group recommended that the client sell the business. Kinsella Group prepared an offering memorandum, identified strategic prospects and conducted a series of meetings with strategic buyers. Based on these efforts, and the company’s strengthened financial position, the client was able to sell assets of the business to satisfy bank debt and generate financial returns to the equity holder.
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In order to provide those services listed that involve securities, including capital sourcing and M&A advisory services for transactions involving stock or debt, certain Principals of Kinsella Group are licensed as FINRA securities agents with an unaffiliated registered broker/dealer, Burch & Company, Inc., 4151 N. Mulberry Drive, Suite 235 Kansas City, MO 64116, and would perform such services acting in this capacity.
