CLIENT TRANSACTIONS

Sanotech 360, LLC

Client Profile

Sanotech 360, LLC dba EMist develops advanced systems that apply disinfectants more efficiently than conventional methods. The Company’s products utilize electrostatic sprayers, which place an electrical charge on chemical droplets and disperse the disinfectant across a target area, providing comprehensive coverage of the solution. EMist’s patented technology can quickly cover large areas in airplanes, cruise ships, hospitals, schools, warehouses and many others commercial spaces.

Situation

While the Company had a modest revenue base during its development phase, the COVID-19 pandemic created significant demand for EMist’s products and sales grew exponentially in 2020. Management built its inventory based on expectations of continued demand, but the availability of COVID-19 vaccines in early 2021 led to a significant reduction in demand for disinfection solutions. Not only did revenue and cash flow decline, but the Company also had to deal with high levels of inventory. In response, management implemented a plan to reduce excess inventory, proactively reduce its cost structure and streamline operations.

Solution

Given the financial pressure, EMist filed for bankruptcy in order to restructure its balance sheet and recapitalize the business. SSG was retained in January 2023 as the Company’s exclusive investment banker to conduct a comprehensive marketing process to solicit offers for a sale of the Company’s assets. SSG’s thorough marketing process garnered interest from a number strategic and financial parties. Ultimately, the offer from Bio Surface Management Company, LLC proved to be the best solution. SSG’s experience running competitive sale processes resulted in a transaction that maximized value.