MNG Health

Summary

Financial Advisor

Charlotte, NC

MNG Health provides technology-enabled marketing solutions for life sciences brands and enterprises. The company faced declining financial performance, executive and sales team turnover, and instability, leading the sponsor to cease funding and agree to a change of control with senior lenders.

Carl Marks Advisors (CMA) advised the senior lenders on a balance sheet restructuring, resulting in the conversion of most lender debt into full ownership through an Article 9 Foreclosure Sale.

CMA evaluated the company’s 13-week cash flow forecast, short-term liquidity needs, and financial projections, offering an independent assessment of funding requirements and identifying key opportunities and risks. We analyzed order bookings and backlog to validate financial projections and operational practices. Additionally, CMA negotiated a “NewCo” Management Incentive Plan between the company’s executives and senior lenders.

Key Challenges

Under performing financial results

Liquidity shortfall

Balance Sheet Restructuring

Engagement Highlights

Advised the senior lenders on key issues around a balance sheet restructuring where the senior lenders converted the majority of their debt into full ownership of the Company, critical issues we focused on included;

Advised the Senor Lenders on various balance sheet restructuring options, including the selected path of an Article 9 Foreclosure Sale
Evaluated the accuracy of the Company’s 13-week cash flow forecast and independently assessed the short-term liquidity needs of the business
Performed an assessment of the Company’s financial projections and liquidity outlook, providing third party viewpoint on funding need and key opportunities and risks to plan
Quantified the existing order bookings + backlog to assess the financial projections for the current year plus assessed the “go-get” initiatives and assessment of operational practices
Negotiated a “NewCo” Management Incentive Plan with the Company executives and the Senior Lenders

MNG Health

Summary

Financial Advisor

Key Challenges

Engagement Highlights

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