Business

American IronHorse Motorcycle Company, Inc. is the largest factory producer of V-twin custom motorcycles in the world, with sales in 2005 approaching $100 million. Founded in 1995, American IronHorse designs, manufacturers and markets a line of factory customized, uniquely hand-painted, high performance motorcycles sold through some eighty dealers nationwide and in Canada.

Client Objective

American IronHorse experienced declining sales to dealers and customers as a result of softening demand in the category and reduced consumer spending. With sales for the 2007 period deteriorating to less than $30 million, the Company reported negative cash flow in excess of $8 million. White Oak Group was engaged as financial advisor to explore strategic alternatives including a recapitalization or sale of the business.

Results

American IronHorse directed White Oak Group to initiate a sale process with the goal of maximizing the value of the Company. A focused marketing effort among financial sponsor groups as well as participants in the motor-sports category developed competitive interest and multiple qualified proposals. The Company utilized the Chapter 11 process in order to complete a transaction through a Section 363 sale.

A sale of American IronHorse was successfully completed to a stalking horse buyer and the business will continue to operate under new owners.

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