Business Transition Services

Changing the ownership of a business can create major disruptions. Key personnel may seek other opportunities in the midst of due diligence or following final closing, which leads to chaos. It’s also possible the new owner believes existing personnel in key positions lack the skills to maximize potential. In times of uncertainty and transition we are able to step in with highly qualified professionals for a period of time to assist in advancement or to assume necessary roles and further optimize systems or create new strategies.

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Exit Options

When long-term sustainability is not considered to be achievable, our exit option specialists can assist in the development of an exit strategy that optimizes the recovery of economic value for the benefit of all stakeholders.

This may include the operation of the business through an orderly wind-down period, an all asset sale, or hard stop if called for. Operating the enterprise through an orderly wind-down provides the best opportunity for recovery of otherwise unrecoverable inventory value, maximizes recovery of receivables, minimizes disruption to customers dependent upon steady supply, and provides the best possibility for recovery of going concern value.

Orderly Wind-Down

When long-term viability is unlikely, it is usually beneficial to most stakeholders to operate the company in a limited or scaled-down mode for a short period of time as a means to extract significant off-balance sheet value. This may entail fulfilling orders already in process, or taking additional orders from customers in order to maximize inventory utilization, and gives those customers time to resource to other suppliers. Effective communication with trade creditors and customers is critical for success in this area; we take an active role in this process. Additional benefits include enhanced receivables collection, continued employment for key individuals, and time to sell off intangibles such as customer lists and intellectual property that may only have value while operating.

Sometimes additional lending may be required for a short period. All risks are carefully evaluated to determine exactly how this additional working capital would be deployed, and the time frame in which it would be recovered along with the incremental value achieved through this process. The principal lender as well as other significant stakeholders are included in making this risk vs reward decision. Throughout the process, the Level Ten team provides oversight or hands-on management as well as regular communication of actual compared to projected results.

Hard Stop

When a determination is made that cash and or collateral assets are quickly eroding and would not recover under an orderly wind-down, the controlling parties may conclude that a hard stop or immediate shut down of the company is necessary. The Level Ten team can work cooperatively with existing management or independently to facilitate this process, with a focus on minimizing losses and realizing maximum value for assets. Communications with all stakeholders including creditors, customers, employees, owners, and other third parties is foundational to value maximization.

Our experience and networking with end purchasers of assets or intermediaries offers the best opportunity for maximum recovery, while our understanding of the potential pitfalls and risks helps minimize losses that may occur in connection with this strategy.

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Mergers & Acquisitions

Our extensive experience and knowledge in the area of business combinations provides an excellent foundation for performing various supporting roles, including due diligence procedures, transition management, and identification of opportunities for performance improvement. We can also function in the role of intermediary between the parties.

We also have relationships with third parties that represent enterprises desiring strategic alliances or mergers, where such a combination may provide the opportunity for a strengthened single entity.

M&A Services

• Due Diligence Procedures

• Transition Management

• 3rd Party Intermediary

• Strategic Plan Integration

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Succession Planning

Business owners desiring help through the process of transitioning ownership to family members or third parties can depend upon our experience and expertise in planning for successful succession and transition. Small businesses often obtain the services of a business broker, or larger businesses with investment banking firms. Sometimes this is the best option with or without the assistance of a trusted advisor. We evaluate each situation on a case by case basis and recommend the best options to consider and, if appropriate, recommend the services of a competent firm or professionals to perform valuations, legal services, or to solicit offers. Level Ten specializes in helping the owner to optimize his or her enterprise’s value in advance of transitioning ownership.

In situations where succession will be to family members, we help point out areas where upgrading best practices in operations and administration can optimize and better manage business risks.

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Multi-Generational Management

Navigating different approaches from different generations can be the difference between thriving and failing. Coming to the realization that you need help speaking each other’s language, is the first step in moving toward success.

 

There are two different multi-generational management scenarios

• 1. One family member managing another family member

• 2. One generation’s style of management to another generation’s

 

We can help an organization assess the communication gaps by

• Providing behavior style assessments

• Generational Education

• Aligning strengths and weaknesses

• Sharing vision and path to accomplish goals

 

Multi-Generational issues in the workplace are not a new thing. However, the rate at which the world and technology changes has amped up its affect in the workplace. We can help combine trusted methods with new creativity and technology to take your business to the next level.

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Interim & Transition Management

At Level Ten Consulting Group, we have significant experience in crisis situations, enabling us to deploy time-tested and refined strategies for navigating through the most difficult of circumstances.

Our collective knowledge and experience is the product of many years of hands-on involvement in various roles of management from the executive office to the shop floor.

Interim Management

At times, the absence of a significant manager or the need to backfill a core competency that may be lacking within can place a company into a high risk.  We are able to respond to this need with interim management possessing the necessary skill sets on a temporary basis.  A secondary benefit of this is the development of management tools that become the property of the client, as well as mentoring other management team members so that their skill levels are enhanced.

Transition Management

In other situations where an enterprise, particularly one in some stage of distress, is sold as a going concern or as a liquidating estate to a third party that requires transition management support.  In those situations, a management team can be deployed as the need may be. 

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Cost Analysis

A component of any performance improvement strategy is measuring costs. In manufacturing, obtaining an understanding of what direct costs are incurred with each product is key to understanding where more growth should be pursued, changes in pricing, tactical improvements made, or a combination of any and all.

 

Costing Methods

Often we see sophisticated cost methods used such as Activity Based Costing or similar, but methods such as these may cloud the reality that would otherwise show using fixed and variable costing with contribution margin analysis. We develop models that analyze each product being produced or service provided and use those metrics to direct the development of improvement strategies that promote better financial health.

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Commercial Financing

Our credibility with conventional financing sources is outstanding. Our commercial funding sources know that we do not refer them into risky situations, so when those opportunities warrant a referral, they take it seriously.

Accordingly, we are able to assist with obtaining the best possible commercial lending relationships satisfactory to both parties. We strive to ensure that an excellent working relationship is established and maintained into the future.

• Commercial Financing Assistance

• Commercial Lending Support

• Commercial Loan Assistance

• Industrial Bridge Loans

• Industrial Development Revenue Bonds (IDRB)

Financing For Distressed Companies

At Level Ten Consulting Group, we have worked with numerous distressed companies in the procurement of working capital and commercial financing.

Our business recovery and turnaround specialists are experts in securing commercial lending based on:

• Asset Based Lending

• Accounts Receivable Factoring

• Mezzanine Loans

• SBA Loans

• Conventional Term Loans