Environmental Services - ReSolve Capital Partners

Environmental services

ReSolve Capital Partners

Environmental services

ReSolve was approached by a private equity house for advice following a funding request from one of its portfolio companies which operated in the environmental services marketplace. The target company’s trading history was volatile and its principal bank was becoming increasingly fatigued.

ReSolve was asked to advise the private equity house in respect of the company’s options. Following an initial review of the business, ReSolve concluded that a viable business existed which should be financially supported by all stakeholders. Rescue finance was offered, however the package of new investment was rejected by the company’s bankers.

Whilst the private equity house was willing to finance the company it could not do so without the on-going support of the company’s bank. It therefore, regrettably, prepared to walk away from its investment. However ReSolve, believing there to be significant value at risk, and on invitation, instead acquired the private equity house’s debt and equity, and paid off the bank in order to take full control of the situation and restructure the business in a consensual manner.

ReSolve worked contingently with the Company to restructure the business and find a buyer. A sale of the business was ultimately achieved, some 190 jobs were saved, the management team earned bonuses, and significant value was returned to the investors where otherwise they would have received nothing.

‘We always strive to keep businesses alive and look for innovative solutions to maximise their chance of recovery. We are pleased to have been able to deliver such a positive result for this organisation.’

Cameron Gunn, Senior Partner, ReSolve

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