The following case studies are included here simply to demonstrate how innovative IEG is in structuring successful outcomes for its clients. The studies listed will be continually added to illustrate different approaches. In some of the case studies, PEG was actually subcontracted by a party who had the primary client engagement relationship but, in all cases, every client outcome was solely engineered and effected by IEG. An interesting common thread to note is that IEG solutions are usually multi-part but all brought together to effect outcome at the same time.

SITUATION : two stockholders, both over normal retirement age and wishing to retire : two sons groomed to take over but no equity in the company : bank in foreclosure mode : loss of largest customer at almost one-third of total business : large creditor repayment commitments committed to for number of years going forward : predicted increase in business from open quotes not capable of being financed in early period.

IEG SOLUTION : six offers brought to the table : five offers for acquisition and one for mezzanine style refinance : business sold as going concern to a competitor with whom merger talks had previously stalled : sold for about four times what that merger would have given the stockholders : both sons employed with opportunity for equity positions : long term creditor commitments appear covered under the payout arrangement : retiring stockholders both received long term non-compete agreements effectively compensation them for what would otherwise have been a zero equity exit.  

SITUATION : client had permanently lost 40% of business during a strike three years previously : lost money for the past four years : unworkable union contract : poor labor management relationship : key management defections : overseas competition from Asia : secured lender moved loan into workout for foreclosure : pension plan seriously underfunded on an actuarial basis : health insurers enforcing individual employee collection : plant previously sold now classed by EPA as contaminated and mortgage in arrears.

IEG SOLUTION : business sold as going concern to Chinese-Korean consortium : real estate sold to local developer : owner collected accounts receivable : mortgage note from buyer of contaminated real estate sold to investor : primary plant sold to local investor

OUTCOME : secured lender fully paid : trade payables fully paid : health care claims settled for equitably negotiated amounts : pension claims settled : owner was fully repaid for personal loans to company : owner extracted significant equity gains 

SITUATION & SOLUTION : IEG was asked by another broker to assist in structuring the sale process : IEG helped establish the marketing documentation : IEG provided the database research : IEG provided evaluation and advice regarding prospects who responded to the solicitation : IEG was paid a flat fee at Closing.

SITUATION : classic automobile manufacturer in ch.7 bankruptcy for odometer fraud precipitating customer defection and bank foreclosure at both corporate and personal guarantee level : plant had been shuttered for past eleven months.

IEG SOLUTION : business sold as a going concern to former East German distributor : visas secured for buyer to allow local management : court approved s.363 sale

OUTCOME : going concern business re-established just 90 days after IEG retention ; significant dividend received by the bankruptcy estate : note: business has been resold.

SITUATION : state court receivership : unprofitable $9mm annual revenues two farm dairy operation with 10,000 cows : second farm built less than two years before at $8mm cost over-run : $20mm owed to secured lender : mastitis disease prevalent amongst both herds : milk output below break-even per cow : secured lender and owner irreconcilable : EPA vilotaions ongoing : Sierra Club considering action of rmanure spill runoff.

IEG SOLUTION : dairy specialist brought in to manage the farms : milk output doubled with use of BGH : revenues increased 50% even in milk price collapse market : EPA violations curtailed by establishing truck weight monitoring jointly with DOT : new equity investor (overseas relative) secured under pressure of scheduled sale to outsiders.

OUTCOME : secured lender received $3.2mm more cash, after all costs, than their internal estimated liquidation analyis showed : working capital introduced : former owner retained minority interest : farms remained fully operational with no loss of employment.

SITUATION : potato chip and pretzels manufacturer in ch.11 bankruptcy : $25mm annual sales but no profits in past 5 years : net book value $4.5mm : two manufacturing locations : number of farms and farmland owned both as investment and site for fertilizer based method of disposal of potato waste : bank debt had been purchased at a deep discount by an investor.

IEG SOLUTIONS : viewed business in its separate divisions, some of which were profitable, such as van delivery service : manufacturing and distribution sold as a going concern to a complementary company : non-core real estate (farms) sold to neighboring landowners.

OUTCOME : core business sold as going concern for $9.8mm : back up bidder at $8.1mm : estate realized more than twice its net book value just for the core business : debt purchaser made a handsome profit during a two-year hold on prior purchase : core business has since been sold again by IEG, still as a going concern.

SITUATION : manufacturing company with negative EBITDA : parent company (overseas) in receivership : financial structure was mainly operating leases requiring high annual cash outflow.

IEG SOLUTIONS : converted operating leases to loans which were bankable because lease treatment switch created positive EBITDA : industry individual paired up with private equity group as new equity buyer : new primary secured lender put in place : business sold as going concern.

OUTCOME : business is still a very viable going concern : no loss of union employment : existing secured lender fully paid : operating lease holders partly paid at closing plus hope not for balance : trade payable fully paid : equity players introduced additional capital for deferred maintenance and new equipment purchase.

SITUATION : military manufacturer in ch.11 bankruptcy filed as defense against secured lender claims of loan covennat breach.

IEG SOLUTIONS : two individual investors aired together to buy out the real estate and lease it back : competitor financed inventory on a consignment basis : competitor purchased machinery and equipment on  a sale leaseback basis : factoring company financed non-government receivables : previously pledged personal real estate released and financed to provide working capital : results achieved by IEG in 43 days.

OUTCOME : secured lender paid in full, including interest and legal fees : bankruptcy administrative fees paid in full : dividend paid to mother creditors : company has since paid off all new debt and refinanced conventionally : note: business has since doubled sales and tripled EBITDA.

SITUATION : manufacturer of photographic casket overlays : patented product : marketing never took off under existing owners : investors jaundiced and unwilling to put in additional capital : potential trust situation problem from prepaid casket commitments.

IEG SOLUTIONS : split business into three component parts by user type - consumer, funeral home and prepays : master license for manufacture and use of patented technology : sub-license granted to marketing company under a fixed price structure.

OUTCOME : quarterly royalty stream received by original investors : two going concern manufacturing and marketing businesses established.