Oak Capital Group
MERCHANT BANKERS AND ADVISORS
Consumer Products
A middle tier apparel manufacturer, distributor and retailer
continues in business after a dramatic restructuring. The company
went from being stable and salable to financial distress in a matter
of months due to predatory competitors, poor information systems and
a disastrous attempt by management to sell the business. While
identifying and developing outsourcing, lean manufacturing and
supply chain solutions, Oak Capital Group worked with management to
rapidly implement the strategies to restore company viability and
profitability.
A specialty retail jewelry chain of nine stores benefits from a
strategic restructuring opportunity. This privately held firm’s
annualized revenues dropped to $25 million and was facing immediate
liquidation with no on-hand cash or strategies to attempt a
corporate restructure. The deteriorating regional economy, high real
estate lease costs and significant competitor encroachment into its
historically profitable markets caused a liquidity crisis. As a
result of the strategic role by an Oak Capital Group principal, the
company was able to achieve a corporate restructuring/sale that
satisfied the secured lender’s obligations and provided an
attractive return to the firm’s principals.
Business Services
A member of the Forbes 300 largest private companies indirectly held
a portfolio of energy and environmental service companies with
annual revenues in excess of $60MM. The inability of management in
the portfolio companies to integrate the acquisitions caused the
companies to underperform and required ongoing cash infusions. Oak
Capital Group provided financial, reorganization and investment
banking advisory services to achieve a combination of
financial/operational restructuring and divestitures that retired
$15MM in institutional acquisition financing.
Energy
A new alternative energy generator gains initial project finance
funding. A diverse management team brought alternative energy
technology to market that utilizes land fill gas (LFG) to generate
electricity. After various financial advisors failed to fulfill
their engagements, Oak Capital Group was retained to assess and
provide viable strategic solutions. After extensive project
financial due-diligence, Oak Capital Group was able to successfully
restructure and credit enhance the initial $5 Million transaction as
part of an overall $25 million arrangement. The initial 5MW plant
provides enough wholesale electricity (sold to a major U.S. utility
company) to serve 4,000+ homes.
Manufacturing
A specialty commodity goods manufacturer gains a strategic
restructuring opportunity. This privately held firm, while showing a
$1 million annual positive operating cash flow, was facing immediate
foreclosure. The company had neither viable strategies going forward
nor any available cash to attempt a corporate restructure. The high
company debt load and the impairment of a large portion of its
accounts receivable caused a liquidity crisis. As a result of Oak
Capital Group’s efforts, the company was able to achieve a corporate
restructuring that satisfied the secured lender’s obligations and
allowed the company ample time to pursue broader strategic
solutions.
Distribution
A new energy distributor gains start-up funding. A management group
involved in peripheral NASCAR businesses obtained exclusive
southeastern U.S. distribution rights for fuel products. Oak Capital
Group provided financial and strategic advisory services in
conjunction with a $1.5MM primary equity offering and $2.5MM
secondary equity offering. The $1.5MM primary offering enabled the
company to commence U.S. operations.
Non Profit
A start-up charter school obtains permanent facilities financing.
Over a four-year period, Oak Capital Group principals provided
extensive financial, marketing and operational advisory services to
this start-up school. Within 8 months of the start-up of the school,
Oak Capital Group arranged $2.2 million in non-recourse financing
for permanent school facilities. The school currently ranks among
the top 5 charter schools academically in its state, in the top 5
middle schools among all public middle schools in its state and has
become one of the largest charter schools in its state with a 500+
student waiting list.