During 2001, we spent nine- months supporting another public corporation in its acquisition of a Seattle based company in the business of providing "last-mile" fiber optic digital infrastructure to multiple-dwelling units (very large apartment complexes) so it could supply television and high-speed internet services to residents.

The sellers were company management and shareholders from a venture capital firm that had provided nearly $10 million in funding for acquisitions and build-out. Changing market conditions resulted in a lack of additional capital for acquisitions and operations.   Our client, the public company buying the assets, stepped in to fund its potential acquisition's operations on a controlled, but limited basis, until the purchase transaction could be closed.  Our initial task was to negotiate with large creditors to obtain payment relief.    We were able to negotiate many of the creditors into a delayed payment plan, and in some cases a conversion of debt to equity. During the course of the acquisition we also performed daily cash flow management, cash flow planning, reorganization planning, arranging for accounting following the controller’s departure, financial analysis of the business operations, and finding and documenting unrecorded liabilities. Post-closing we assisted in an operational reorganization to include outsourcing, staff reductions, and consolidation of operations.  The public company went on to raise over $5 million in growth capital post closing and has since entered into two additional acquisitions.

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Last Modified:  April 17, 2006