American Laser Skincare

Client Profile
ALSC is the nation’s largest provider of hair removal and skin rejuvenation services. With over 150 retail clinics nationwide, the Company offers laser hair removal, cellulite reduction, body shaping, skin rejuvenation, eMatrix, BOTOX®, Juvederm and Radiesse among other services. The clinics also sell multiple beauty enhancing products including Latisse and Vivite products. Since the Company’s inception in 2001, ALSC has been a leader in evaluating and launching the newest and most effective technology-based skin and hair options for its clients.
Situation
Although ALSC had a history of strong revenue growth and positive EBITDA, the recent global economic downturn had a significant impact on the Company’s financial performance. With the sluggish economy, customers were less inclined to spend on the discretionary services and products that ALSC offers. In addition, the Company had several missteps with marketing and service pricing. As a result, the Company’s financial performance was negatively impacted, its market share decreased and liquidity was strained causing a default under its secured loan facility. In order to sell its assets, the Company filed for Chapter 11 protection under the U. S. Bankruptcy Code in the District of Delaware on December 8, 2011. Versa, which acquired the senior debt of ALSC in mid-2011, agreed to provide the DIP financing and serve as the stalking horse bidder for substantially all of ALSC’s assets.
Solution
SSG was retained as the Company’s exclusive investment banker for the purpose of marketing the business and soliciting competing offers to the proposed stalking horse bid. Versa’s stalking horse offer was ultimately the highest and best price for substantially all of the assets of ALSC. The sale was approved by the Bankruptcy Court on January 31, 2012. SSG’s experience in condensed M&A processes and Section 363 sales in Chapter 11 enabled all key stakeholders to maximize the value of the Company while preserving the jobs of substantially all of ALSC’s employees.