Uniquely Combing Management Turnaround Services with a Low-Cost, Fast-Track Debt Reduction Program
Massachusetts/Fort Lauderdale, FL – August 2020 – Synergy Enterprises, LLC, a firm specializing in helping distressed and underperforming companies return to profitability and positive cash flow, and Second Wind Consultants, a Massachusetts-based firm specializing in fast-track Article 9 restructurings, have formed an alliance to provide single-source solution for struggling companies.
Corporate bankruptcies are a destructive process. They are costly and time-consuming, and the very last thing owners and management should be spending time on when their company is in trouble. This is especially true when subordinated and other forms of high-cost debt (such as Merchant Advance loans) are consuming an otherwise healthy business.
Owners and senior management of struggling companies typically don’t have the time or unique skills needed to operationally restructure a business, especially in times of crisis. When it becomes clear there isn’t enough time or money to complete the process, owners then turn to bankruptcy attorneys to begin the long, costly and often unsuccessful court process to deleverage through bankruptcy.
Even with all that, it isn’t unusual to see a company back in bankruptcy before you know it. It’s easy to see why: Bankruptcy is like a Dutch Auction. To gain creditor approval of the company’s restructuring plan, the process is designed to find the most debt a company can afford. Even if debt is substantially reduced, companies soon find themselves trying to get out from under a still-overleveraged balance sheet.
The partnership between Synergy Enterprises and Second Wind offers a faster, less costly, single-source solution. By professionally tackling the operational restructuring of the business while simultaneously preparing for an Article 9 sale, up to 90% of the cost of a bankruptcy is eliminated, the exit timeline is reduced from nine months (or longer) to less than 60 days, the go-forward balance sheet is reset with an affordable asset-based loan to provide maximum liquidity, and the operational structure of the business is optimized by flattening the org chart, improving operating efficiencies and reducing costs.
Gary Nacht, owner and CEO of Synergy Enterprises, stated, “Turning a company around is a difficult and fully immersive process. Even when done well, if the balance sheet remains over-leveraged, the company is for all practical purposes working for the benefit of its creditors, not its owners and employees, while continuing to deplete its dwindling resources.”
“By combining the turnaround capabilities of Synergy Enterprises with Second Wind’s Article 9 expertise, companies can now benefit from a single, integrated solution to simultaneously restructure and deleverage, priming the business for success,” he added.
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About Synergy Enterprises
Gary Nacht, principal of Synergy Enterprises, has been acquiring and advising distressed and underperforming companies for over 25 years, from start-ups to over $1b in revenue across a diversity of industries and channels. His turnaround acquisitions include Northern Reflections (a $100 million Toronto-based retail women’s apparel chain), AmerTac, Inc., (a $60 million New Jersey-based designer and distributor of home lighting products and accessories), GPX, Inc. (a $180 million St. Louis manufacturer and distributor of consumer audio/video products), Gemini Industries (a $180 million NJ-based manufacturer and distributor of Philip’s-branded consumer electronics) and Kmart Canada (a $1.2 billion Toronto-based big-box discount retail store chain). His specialties include:
- Streamlining operations
- Rationalizing corporate structures, overhead and operating expenses
- Contract negotiations with suppliers, lenders and other key stakeholders
- Increasing gross and net margins
- Upgrading data capture, access, analysis and KPI reporting
About Second Wind Consultants
Second Wind Consultants is America’s fastest-growing business consultancy. Over the past ten years, we have been driven by a mission to preserve and generate economic value, with a core specialization in debt elimination that creates efficiencies for both owners and creditors. Second Wind works with private equity groups, alternative lenders, M&A professionals and trusted advisors across the country to facilitate new transactional solutions unavailable anywhere else.