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December 22, 2011
Date Funded: 12/20/11
Facility Amount: $750,000 plus an inventory based term loan and an overadvance facility.
The Company: This Wisconsin company assembles and sells pedicure spa chairs to various customers, including large beauty product distributors as well as boutique salons. Their parent company has been looking to sell this portion of their business.
The Issue: An existing Allied client found an opportunity with this Wisconsin company as it would allow them to expand their market share and enter into a new niche product line. The sale of the company included a foreclosure on the existing assets of the company and an asset purchase. To complete the sale, additional funds were needed over and above a factoring facility based on accounts receivable. Moreover, the transaction had a quick closing deadline, as the prior potential buyer was unable to consummate the sale. The deadline for closing was within two weeks of Allied receiving the initial package.
The Solution: Allied’s existing client, having worked with Joel Flig at Allied when they came on board, reached out to Joel for assistance and referred this company to him. Allied was able to provide a factoring facility and help bridge the shortfall in the purchase price by providing a short term note component based on inventory and an overadvance facility. The entire transaction was closed within just ten business days.
The Win: This “Funding by Allied” provided the financing necessary to complete this acquisition which will potentially allow the company and Allied’s existing client to enter into the beauty products packaging markets with national distributor channels and grow their respective businesses.
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Tags: Acquisition Capital, News, Small Business, Success Story, Working Capital
November 17, 2011
 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.
Related Articles: Allied Affiliated Funding Provides $1,000,000 Growth Capital Facility to Illinois Manufacturing Company, Allied Affiliated Funding Provides $1,000,000 in Growth Financing to Staffing Company, Allied Affiliated Funding Provides $1,000,000 in Growth Financing to Technology Company, Allied Affiliated Funding Provides $500,000 in Start Up Financing to Texas Staffing Company, Allied Affiliated Funding Closes First Factoring/ABL Transaction of 2012, Allied Affiliated Funding Provides $750,000 in Acquisition Financing to Wisconsin Distributor , Allied Affiliated Funding Provides $4,000,000 Growth Capital Facility to New York Wholesaler , Allied Affiliated Funding Provides $250,000 Working Capital Facility to Texas Distribution Company, Allied Affiliated Funding Provides $500,000 Working Capital Facility to Texas Service Company, Allied Affiliated Funding Provides $500,000 Working Capital Facility
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Tags: Acquisition Capital, Recent Fundings, Small Business, Success Story, Working Capital
June 14, 2011
Date Funded: 6/7/11
Facility Amount: $1,000,000
The Company: This company is an Illinois based manufacturer that prepares, blends and packages dry ingredients such as powdered milk, pancake mix, nutritional supplements, etc. They can source, blend, pouch, or kit and assemble the customized requests of their client base.
The Issue: The principal of one of Allied’s existing clients approached Allied with a request for acquisition financing with the intention of acquiring then factoring the receivables of this company that operates in a similar industry.
The Solution: The existing client contacted Joel Flig at Allied, and due to this client’s own favorable history with Allied, we were quickly able to assist with the client’s request to provide the funding necessary to acquire the business.
The Win: This “Funding by Allied” will not only provide the growth/acquisition capital needed by one of our existing clients to acquire the business, but it will also provide the funding to grow and expand the company following the acquisition.
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Tags: Acquisition Capital, Recent Fundings, Small Business, Success Story, Working Capital
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