Our client purchased a business that she wanted to make work. She worked for several years to boost revenue and cut expenses. However, with several leases coming to an end, she decided it was time to wrap up operations. The problem was that she had an agreement to pay the old owners a few years more.
How to exit the business with the lowest out-of-pocket cost.
We developed a picture for the creditors that reflected a challenged business model, despite the best efforts of our client. With several things happening beyond her control that further hit revenue, we were able to show the business was unable to continue to succeed. We also understood the past owners (also creditors under the purchase agreement) had an affinity for the business and might want the name and some assets back.
We negotiated a deal that saved our client about 75% off her obligation, which was a fraction of her exposure. It also protected other assets that might have been attachable if she was forced into litigation or bankruptcy.
100% Avoided Bankruptcy
Prospective clients may or may not obtain the same result.