Board/Special Committee Advisory

For the directors of a company, financial distress is often an unanticipated event. When a company transitions from a position of relative financial health to one of financial distress, the precipitating events can occur quickly and typically include one of the following:

• Over-leveraged balance sheet
• Covenant and/or payment defaults
• Collection issues
• Lack of internal controls
• Loss of a major customer, supplier, or key employee
• Discovery of fraud
• Product failure
• Obsolete business model
• Cyclical downturn
• Volatility in raw material and energy costs
• External shock to economy

The Mirus Special Situations Group can act as the financial advisor to the Board of Directors or Special Committee and work with the company’s executive team to evaluate any number of strategic alternatives. Whatever the cause, all of these difficult issues can be addressed, and often the company’s "distress" can be managed so as to ameliorate any hostile relationship between the company and its creditors. With the help of an effective financial advisor experienced in distressed situations, creditors can and will often work diligently with the company to facilitate a consensual resolution.

Often that consensual resolution may involve a transaction, such as a sale of all or a portion of the business in an efficient and orderly way that preserves going-concern value and avoids the potential for the loss of substantial value through a prolonged process.