Operating Companies
Business Owners and Stakeholders

As each of us at Abacus Financial can attest, the financial and credit facilities that were once readily available to well-run and well-managed US-based operating companies have become very rigid, impersonal and practically inaccessible on terms that make sense for an operating company that is facing the challenges of the overall economic malaise. Credit lines have been terminated or constrained, covenants have been tightened, equity ratios have been unreasonably increased and the value of personal relationships with “bankers” has evaporated. Expansion and growth capital, as once understood and taken for granted by management, are now just myths or memories of “the good old days”. Both the debt and equity markets have been forever materially altered to the disadvantage of promising operating companies. America’s engines of production and growth are paying the price of banks and Wall Street financial engineers. The financial sector was rescued and has returned to profitability, while the economic engine of America is being starved of the fuel it needs to exploit its potential.

Lenders of all sorts have pulled back dramatically. The era of easy money from local and national capital markets is over. Many well founded operating companies are now left scrambling in a desperate search for operating liquidity and expansion capital. Legacy debt is now such a material burden on the company’s balance sheet and the company’s management that it has completely consumed the daily focus of senior management. The financial mavens who were so eager just a few years ago to throw money at any good idea have disappeared and many have joined the ranks of the unemployed. You are left with the problems. How does our company survive and grow?

Still in shock by the abruptness and severity of the contraction, management is constantly distracted throughout each working day consoling subordinate employees who worry and ponder their fate and the future prospects of the company. Company moral is at an all time low; impacting individual performance of long term key employees and exacerbating the challenge to keep the enterprise operating.

We at Abacus Financial are seeking to acquire these very companies experiencing the challenges of the current economic and financial circumstances. Good, solid companies, but for the overwhelming current debt levels and credit contraction, would be well on their way to future growth and success. Our goal is to acquire these promising and hopeful companies and make it the top priority to solve the capital structure crisis and settle distractions with adverse parties that are polarizing and eroding the focus and conviction of senior management.

Once acquired, Abacus Financial immediately focuses on managing the restructuring of the balance sheet, allowing senior management to elevate their focus solely on managing the daily needs, affairs, and goals of the company. In short, management can get back to managing the business, rather than lawyers and lenders. The Abacus Financial principals delight in the challenge of stabilizing the financial affairs of the company and they possess the experience, creativity and tenacity required to successfully unlock and uncover the hidden, yet inherent, value of the enterprise as a going and growing concern. The last chapter for these promising companies is yet to be written.

Make a call or write to one of our experienced and knowable acquisition specialists to discuss confidentially your company’s unique circumstances. There is a team on standby just waiting to help. There is a bright future for YOUR company!