Recapitalizing for Growth

Challenge

A manufacturing and distributing company was experiencing rapid growth after significant financial disruption during the COVID pandemic.  The company’s current lender was re-evaluating its overall portfolio. Not only was new financing in the short term not an option, in the long term the bank was not likely to have an interest in continuing the relationship regardless.

THE FINTREPID SOLUTION

Financial Storytelling

The company had experienced some material financial blips in the prior 2 years but had shown very solid trends in key performance areas as it recovered and accelerated.  Fintrepid Solutions created a very broad analytical package showing quarter over quarter and trailing trends and detailed collateral analysis which demonstrated very favorable performance and highlighted the positive financial impact of key management decisions.  Fintrepid Solutions was also able to create a narrative establishing defensible support for assumptions in the company’s budget, bridging the gap for an external audience.  A sophisticated and robust working capital forecast was created demonstrating to lenders not only the need for growth capital, but also the amount of collateral that would more than adequately support a line of credit.

Go To Market Execution

After assembling this in-depth financial package with narrative and financial support, Fintrepid Solutions went to market presenting to multiple qualified lenders and coached the CEO to match the management storytelling with the other pieces.  Fintrepid Solutions negotiated potential structures and was able to provide additional due diligence information and successfully addressed multiple rounds of detailed questions.  Detailed analysis of final structures were evaluated to determine the impact on the company and its ability to meet its internal growth goals.

Case Study

END RESULT

The company was able to refinance its current debt at a lower cost, and increase its line of credit by over 125%, with a commitment to fund additional growth in the near future.  The CEO and management team could now confidently make decisions going forward including increased inventory purchasing and customer commitments.  Run rate growth is over 20% higher than the prior year and net profit has improved over by 2 full points.

Contact Us

(602) 675-7452 Phoenix
(520) 415-0188 Tucson

or growboldly@fintrepidsolutions.com

PHOENIX OFFICE

7047 E. Greenway Parkway, Ste. 200, Scottsdale, Arizona 85254

TUCSON OFFICE

319 W. Simpson Street, Tucson, AZ 85701