Leighton Davis Companies acquired Empire Group, a leading provider of pipeline, power line, access mat, and clearing services for the energy sector, faced a critical financial crisis. After completing a leveraged buyout—primarily equity-financed—the company found itself unable to meet debt obligations. Though the deal had been documented by financial advisors, key aspects of the valuation had been overlooked. The company paid 4X EBITDA without adjusting for significant capital expenditures, leaving them with limited cash flow and growing financial distress. As the situation escalated toward litigation, Cascade Capital was brought in to evaluate and restructure the company.

• Developed a defensible and accurate valuation of Empire Group.
• Presented the revised financials to the seller, whose legal and tax advisors acknowledged the oversight.
• Successfully renegotiated the seller note from $20 million to $5 million.
• Structured a new debt plan to align with the company’s operational capabilities and cash flow.