We closed a business
Close a business by creating a a new one.
The task at hand required a creative approach. The team was handed a family-owned business that needed to be folded due to a change in the environment. As it was a regulated business, it couldn't simply be closed down. It had to be kept running until the very last dollar, all while meeting 100% of regulatory obligations. This meant keeping a highly qualified C-suite team on the payroll, even though the balance sheet had dwindled from 1 billion to 10 million.
However, retaining a team to merely shut down a business posed a challenge. To address this, an adjacent new business was started, with the Family Office partnering 50/50 with the employees. The team successfully managed the closing of the original business until the very end. Meanwhile, they grew the new business into a healthy and lucrative venture. Eventually, the Family Office sold its shares to the former employees, who later sold off at a healthy value three years down the line.
This was an extraordinary situation for the family, the kind Westwick Melrose & Cromwell deals with.