Butler Gear Company, Inc. – SC&H Capital was retained to solicit offers for this fifty-five-year-old, Wisconsin-based machine shop, which specializes in producing gears and gear components from the very small to those having diameters over eight feet across. With sales declining, the company was losing money and in default under its secured loan. Lack of working capital was hampering the company’s ability to win and take on new business. Through the SC&H process, more than 100 companies signed confidentiality agreements and considered investing in or acquiring the business. Following in-depth negotiations on behalf of the seller, SC&H was able to put together a transaction through which the secured debt was paid in full, the seller was released from all personal guarantees, employees were retained, and now properly capitalized, the company continues to operate.
