Alvarez & Marsal

Having been created through the consolidation of five operating units, Prinexus, a middle market printing services provider, began facing declining revenue, falling margins and mounting liquidity issues. Integration problems with systems and businesses and management turmoil created roadblocks to realizing the original vision of establishing a full-service company offering everything from web hosting to digital printing services. Seeking to evaluate strategic alternatives, the company's private equity backers retained Alvarez & Marsal as financial advisors to determine the best course of action. After reviewing the units' business and operating plans, including cash flow forecasts and cost reduction opportunities, Alvarez & Marsal concluded that Prinexus could not survive as a going concern and that selling the individual units would produce maximum value for stakeholders. Over the course of 18 months, the team assisted Prinexus in selling its 5 operating units, managing all phases of the process, including issuing a "fairness opinion" to Prinexus' Board of Directors. As a result of the successful effort, Prinexus' secured lender was paid in full and a substantial creditor pay down was achieved.