Financial Advisor to Tier 2 Automotive Manufacturer Operating Under Accommodation Agreements with OEM Customer
Prior to Inglewood's involvement, this automotive Tier 2 supplier ran into financial difficulty which resulted in a major OEM buying out the debt of the company from their primary lender and a management buyout of equity from the private equity firm owner. The management team had improved operations, but was unable to attract new business to replace expiring platforms so long as it was operating under the accommodation agreement with the OEM. Their highest volume parts were ending, which required a significant downsize of operations and a sale of the operation. Inglewood assisted management with cost reductions and strategy for the eventual sale to provide management members with the optimal strategy to meet their respective personal needs. Inglewood also assisted with an assessment of tax consequences of the transaction. This customer hired us as a result of negotiations in another matter where Inglewood represented the opposing party.