Rapid Growth

CASE DESCRIPTION

  • Company was in it’s 5th year of development
  • Funded organically due to unusual circumstances preventing VC or PEG financing
  • On the verge of rapid expansion
  • Uneven cash flow cycle, most of cash collected in first two months of the year

  • Finanical records 18 months behind
  • Never audited or reviewed
  • Not properly capitalized
  • Rapid growth outstripping working capital

  • Brought the financial records up to date in weeks
  • Created credible budget for the next twelve months
  • Determined that the ideal loan was a revolver with a yearly cleanup
  • Prepared loan package with reasonably predictable visibility down to individual customers

  • Term sheets offered by multiple banks
  • Load refinanced in 2 years
  • Increased company valuation 12-fold from $8 million to closed sales price of just under $100 million 3 years later

CASE DETAILS

Company:

Campus Management


Industry:

Software


Loan Type:

Cash Flow


Amount:

$4,000,000


Term:

3 Year Revolver