We know how automotive businesses come apart and how to protect what's left.
The automotive value chain carries distinct financial pressure points. Lighthouse has served as CRO and court-appointed receiver across the automotive sector, managing turnarounds, shareholder disputes, and orderly wind-downs for businesses ranging from $10 million service operations to large scale dealerships and repair shops.
Automotive businesses rarely fail slowly. The financial distress is compounded by vehicles, parts inventory, and specialized equipment that lose value quickly. We bring the operational fluency and financial discipline to stabilize the situation before the collateral erodes.
Appointed receiver over a regional car dealership during a shareholder dispute and closure.
Challenge: A $40 million provider of road construction and telecommunication infrastructure installations encountered adverse weather conditions that caused job delays which resulted in liquidated damages and other unanticipated expenses. Due to resulting operating losses and liquidity issues, the client defaulted on its loan agreements with its bank. At the bank’s request, the client engaged Lighthouse to stabilize cash flow and find alternative financing.
The Solve: Lighthouse worked with the client to develop weekly and monthly cash flow projections, identify opportunities to reduce expenses and raise liquidity through partial divestitures, and to prepare a recapitalization plan. With cash flow stabilized and a plan in place, the client was able to negotiate a forbearance agreement allowing the time needed complete its recapitalization efforts.
The Outcome: Within ninety days, the client paid of its obligations to the bank through a combination of proceeds from the sale of excess equipment and the refinancing of its credit facilities.
How we approach automotive engagements.
1. Financial & Operational Assessment: We evaluate floor plan exposure, inventory aging, OEM and franchise obligations, warranty reserves, and cash position to build a complete picture of where the business stands and what options remain viable.
2. Stakeholder & Lender Management: We engage directly with floor plan lenders, OEM partners, franchisors, and secured creditors to negotiate breathing room while managing expectations and preserving the relationships and programs that sustain the business.
3. Restructuring or Controlled Transition: Whether the path is a turnaround, a sale process, or an orderly wind-down, we build and execute the plan that rationalizes inventory, manages regulatory compliance, and protects asset value at every stage.
4. Asset Recovery and Disposition: We manage the liquidation or sale of automotive-specific assets through channels that maximize recovery for all stakeholders.
The best outcomes start with early action.
The sooner we're at the table, the more options remain available. Reach out for a confidential conversation with our team