Dolven Enterprises, Inc. is a leading manufacturer of bedding and furniture components to many of the world’s most recognizable home goods brands is headquartered in North Carolina and has manufacturing operations in Asia and Central American. It had been embroiled in litigation for three years when SC&H Capital was retained. With no end in sight and mounting legal costs, SC&H Capital was tasked with solving the liability issue, either through a sale or a similar transaction.
SC&H Capital marketed Dolven for sale and received multiple offers for the business. Those valuations were used to bring the claimant to the negotiating table and to reach a settlement. Once the settlement amount was agreed to, Dolven had a short time frame to satisfy the obligation. SC&H Capital advised Dolven in securing funds for the settlement and obtained several options to recapitalize the business. With the litigation resolved, SC&H Capital and Dolven negotiated a new, larger credit facility with improved terms and the necessary pieces were in place to grow revenue. Ownership felt this was an opportune time to rebrand as ZONKD, which has been rapidly growing and actively looking at acquisition opportunities ever since.