A medical device company based in Atlanta that went public in 1998.
Brookwood worked quickly and vigorously to meet the pressing timeline established by HMP and its lender for a recapitalization transaction.
Engagement Process and Outcomes
Distressed Company – HMP pursued a series of acquisitions for cash and, in the process, accumulated a significant amount of bank debt. The Company experienced financial difficulties and entered into a series of forbearance agreements with its lender. In 2002, HMP entered into a forbearance agreement specifying it must hire an investment banker to market the business within 45 days.
Brookwood’s Role – Brookwood assembled a buyers list consisting of over 100 strategic and financial buyer candidates, sent public information packages to all candidates, entered NDAs with 23 parties, disseminated a detailed confidential information memorandum and received bids from 7 potential buyers.
Thorough, Effective Process – Brookwood’s engagement team compelled major strategic buyers to focus immediately, held due diligence meetings on short notice for three potential buyers, bypassed normal investment banking procedures and timing to meet the client’s needs, and produced real offers from credible buyers that provided leverage to the Company in obtaining investors and to the lenders in assessing alternatives. On the last day of the forbearance agreement, the Company consummated a recapitalization transaction.