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Frequently Asked Questions

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How Does Lexington help companies in 'distressed' situations?

Lexington has significant experience in assisting ‘troubled’ companies facing difficult financial situations whether it’s assisting in restructuring a company\'s balance sheet or identifying strategic and financial investors and buyers.

Typically, the health of a company often hinges on its capital structure and its access to adequate and suitable financial resources. At one time or another, a company may find itself facing some particularly tough challenges – perhaps the need to sell operations or assets, to recapitalize or to seek bankruptcy protection. Lexington’s professionals assists clients in turnaround situations by developing and implementing plans to restructure the company’s capital structure, negotiating with constituents including secured and unsecured creditors and arranging, where necessary, new credit facilities and equity sources of financings.

Our professionals can assess the particular situation, identify objectives and provide the strategic guidance necessary to achieve a desired outcome. Based on this assessment, Lexington may:

  • Conduct a formal evaluation and analysis of a particular business strategy in the context of the client’s market, competition and other related economic factors
  • Perform selected analyses to assess the financial viability of a particular strategy
  • Investigate strategic alternatives to assist a company in returning to profitability or to salvage valuable assets
  • Play a very active role in the sale or purchase of businesses’ divisions, subsidiaries or assets. In the course of selling a business operation, the firm will often lead the auction process
  • Negotiate with third parties on behalf of the client, and work with the client’s professionals to assist in closing transactions
  • In addition, Lexington may represent the stalking-horse bidder or subsequent bidders

All client engagements are treated with the utmost confidentiality.