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Conway MacKenzie has established itself as a leader in the automotive industry primarily through the extensive experience of our professionals, many of whom have worked in the automotive industry as an owner, executive and/or consultant for their entire careers.

By leveraging years of collective experience gained while executing hundreds of automotive transactions and restructurings, we are able to maximize value for our clients.

Our team is experienced at recognizing and creating value in all areas of the capital structure of an automotive company, and skilled at executing restructuring and M&A transactions. Our focus in all transactions is to perform critical analyses of the company and its current situation, develop plans to improve its financial and operational performance, and implement those plans while working closely with relevant stakeholders.

Not only do our professionals have depth of experience, but the breadth of their expertise is extensive as well. Conway MacKenzie is well positioned to help all stakeholders address their critical business needs. Our team is experienced in restructuring companies through both operational and financial restructurings and refinancings, executing in and out-of-court restructuring transactions (representing debtors, creditors, and other key stakeholders), developing and implementing performance improvements, and assisting corporate and private equity in all of their transaction needs (including financial and operational due diligence on buy and sell-side M&A transactions). From the shop floor to the boardroom, Conway Mackenzie is uniquely situated to help automotive companies achieve their financial and operational objectives.

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Shifting From Low Gear to High Gear

The Engagement

Conway MacKenzie has played a leading role in some of the most significant automotive restructurings and transactions during the last quarter century. The world’s largest publicly traded auto supplier at the time was facing issues that afflicted much of the domestic automotive industry – excess capacity, slackening demand and crushing legacy liabilities. These challenges led it to seek protection under Chapter 11 of the Bankruptcy Code. Revenues had grown $30 billion prior to Chapter 11. After three years in bankruptcy, a transaction involving a hedge fund failing to close would have resulted in the company’s emergence from bankruptcy.

Our Role

Conway MacKenzie was engaged as Financial Advisor to the largest DIP Lender, eventually working with other DIP Lenders’ advisors to help the company emerge from Chapter 11. The Conway MacKenzie work plan was executed in four distinct but strategically connected phases that ultimately resulted in a consensual transaction, maximizing value for all stakeholders and avoiding disruption in supply to major customers:

  • Developed independent views of liquidation values of the company to support arbitration process
  • Performed financial, operational, and strategic due diligence
  • Developed business plans and cash flow models to support multiple transaction scenarios required to bring key stakeholders to the negotiation table
  • Integrally involved in key stakeholder negotiations, including U.S. Treasury and GM
  • Assisted with capital raising to support required financing for each transaction scenario
  • Prepared with counsel for potential adversary proceedings
  • Provided financial and analytical support for all post-closing work streams
  • Assisted in development and implementation of post-emergence action plans

The Result

The company successfully emerged from Chapter 11 as a $10 billion automotive supplier with significant operations in North America, Europe, Asia, and South America.

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