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