Date Funded:  11/16/11

Facility Amount:  $2,500,000

The Company:  This Northeast based service company is a producer of personalized direct mail and marketing materials (i.e., magazine subscription renewals, credit card solicitations, etc.) for companies and large organizations. 

The Issue:  After an acquisition in 2010, the company faced operational and financial challenges. Management performed a strategic review of the business, which included elimination of the low margin customers, closing facilities and reducing overhead, while identifying methods to improve efficiencies in the business. Unfortunately, the financial burden was too great and the company began seeking other options, one of which included selling the business. 

The Solution:  Allied was able to provide acquisition financing allowing the company to be sold through an asset purchase arrangement.  The management team and workforce remained intact under the leadership of a new, industry experienced owner.  Allied had an opportunity to enter into this transaction because of Joel Flig’s long term relationship with the referral entity and managing member.  Flig was introduced on behalf of Allied, and then Allied’s Deal Team worked diligently, coordinating with seven different parties and at least nine different attorneys, to orchestrate the timely funding of this transaction.

The Win:  This “Funding by Allied” will provide the company the working capital they need to meet the demands of their business. With this new funding, new management and a new capital and debt structure, the business is expected to become profitable again in 2012.