Newpoint Advisors Highlights 16 Proven Paths to Selling a Distressed Business

From quick asset sales to complex recapitalizations, Newpoint Advisors details the best approaches to selling struggling businesses.

BRENTWOOD, TN, UNITED STATES, October 28, 2025 /EINPresswire.com/ -- Newpoint Advisors Corporation, a national leader in turnaround consulting and financial advisory services, has shared a new resource outlining 16 proven strategies for selling a distressed business. The guide, authored by President Kenneth R. Yager, offers business owners, lenders, and stakeholders a clear overview of the transactional options available when companies face financial challenges.

“When distress arrives at the door of a business, every situation is unique,” said Yager. “Our methodologies focus on comparing the options and applying decades of experience and our proprietary analysis and processes to maximize outcomes. We have helped lenders regain close to $1 billion through distressed sales in the last decade.

The 16 strategies are grouped into four categories. Each approach has different results in terms of cost, risk, timeline, and potential recovery value, giving decision-makers practical insights into which solutions may be right for their situation.

1. Fast & Low-Cost Sales: Speed With Higher Risk
These strategies prioritize quick execution and lower transaction costs but often come with trade-offs in risk and recovery value. Examples include quick asset sales, stock or equity transfers, and public auctions.

How Newpoint Helps: A trucking company with outdated equipment filed for bankruptcy, prompting its lender to lift the automatic stay and recover its collateral. The senior lender engaged Newpoint Advisors Corporation to liquidate the company’s assets. Newpoint quickly prepared marketing materials and coordinated a direct sale to interested buyers. Within two months, all assets were sold, and while recovery was limited due to vehicle condition, the sale process itself was executed efficiently and successfully.

2. Controlled Transfers: Balancing Risk and Recovery
Controlled transfer methods allow more oversight of the transaction, helping business owners maintain some control while protecting asset value. This category includes carveouts, bank-managed liquidations, and structured wind-downs.

How Newpoint Helps: A federal court placed an Illinois commercial property, including three restaurants, a marketing agency, and residential units, into receivership amid suspected fraud. Newpoint Advisors Corporation was appointed to secure the property, manage income, and oversee the sale. By engaging multiple private buyers, Newpoint maximized value and achieved a full recovery for both the senior secured creditor and the SBA, including repayment of some back income.

3. Court-Supervised Sales: Clean Exits and Higher Recovery
Court-supervised sales, such as Chapter 7 liquidations and Chapter 11 plan sales, provide legally clear title transfers and maximize asset recovery but involve higher legal costs and longer timelines.

How Newpoint Helps: A Midwest HVAC company, recently acquired by a local family, was forced into bankruptcy during the pandemic after inheriting delinquent union obligations. When the family abandoned the business, the senior secured lender petitioned to appoint Newpoint Advisors Corporation as federal receiver to secure and sell the remaining assets, including real estate, equipment, inventory, and vehicles. Newpoint quickly stabilized the situation, coordinated with the former owners, and executed multiple sales within 90 days. The results exceeded both appraised and auction values, allowing the lender to recover over 60% of its debt despite the company having ceased operations before receivership.

4. Complex Structured Sales: Preserving Operations and Maximizing Long-Term Value
These approaches focus on sustaining business operations while creating a long-term value-maximizing exit. Strategies include recapitalizations, Employee Stock Ownership Plan sales, and mergers & acquisitions. While costly and time-intensive, these options are often the most effective at preserving jobs, maintaining business continuity, and maximizing recovery for stakeholders.

How Newpoint Helps: A well-known food brand struggling with rapid growth and a burdensome capital structure had exhausted friends-and-family funding and relied on costly MCA debt. Newpoint Advisors Corporation, referred by counsel experienced in MCA negotiations, identified creative financing solutions to replace the first lien holder and restructure operations. Ultimately, a recapitalization with a new investor eliminated nearly $20 million in debt and preserved more than 75 jobs.

The full guide is available on Newpoint Advisors’ website.

About Newpoint Advisors Corporation
Newpoint Advisors Corporation is a financial advisory firm dedicated to improving troubled and financially underperforming businesses with revenues of $5-50MM. From the start, Newpoint Advisors built transparency into its methodology: fixed fees, visible scoring, and fact-based evaluations of company viability. Our structured methodology provides a tangible deliverable to assist in monitoring and predicting cash flows.

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