Going Concern Sale
- Stalking Horse Bid of $1,750,000 Court approved bid deadline: 2/12/16
- Court approved auction: 2/16/16
Our firm has been retained by the United States Bankruptcy Court to seek a buyer for United Support Solutions (the “Company” or “USS”) a family owned, precision fabrication, machining, and complete industrial finishing company serving a wide variety of customers in the commercial and medical industries, as well as the government, including the Department of Defense.
USS operates out of two manufacturing facilities totaling 51,000 square feet about 20 miles northwest of New York City; one owned (Cedar Grove) and one leased (Totowa). The Cedar Grove facility is approximately 33,000 square feet with a 2 year old roof and wiring for 2,000 amps. The leased facility is well maintained and the Company occupies 18,000 square feet of space there while having 1,200 amp wiring.
Founded in 1980 as a small silk-screening business, the Company quickly expanded into complimentary product offerings and professional support services, eventually achieving revenue of $15 million/year in 2010. The Company’s growth and profitability put them in a position to successfully bid on and win a five year, $37.4 million government contract in January 2013. Unfortunately, after investing close to a million dollars in tooling and equipment for the new contract, sequestration hit and the contract was put on hold indefinitely – creating a significant cash constraint on the business given the sunken costs for set up. Combined with a reduction in revenue over the past few years, it became untenable for the Company to continue operations under its existing debt structure.
Currently, the Company has a 30% contribution margin on 2015 revenue of $5.8 million and substantial orders for additional work to be completed, but the Company lacks adequate working capital to pursue new opportunities. The Company employs approximately 65 non-union, dedicated and highly skilled individuals with an average of 20 years of manufacturing experience. There is a significant opportunity to not only expand business with the Company’s existing customer base, but also utilize their excess capacity to make new components in any number of different industries to diversify the revenue base.
This is an accelerated sales process through the bankruptcy court, Case # 15-29633 with an existing stalking horse bid of $1,750,000 excluding real estate. The deadline for qualifying overbids is February 12, 2016. For more information on the Company and/or how to participate in the bidding, please contact Debbie Beall at 866-969-1115 ext 6, or send an executed Confidentiality Agreement (back page) to email: [email protected] or fax: 866-604-9434.