With factoring, acquiring companies can turn the accounts receivable of a target company into immediate cash flow to acquire the company and provide for its ongoing capital needs.
Client: Staffing Company
Situation: An investment banker who had worked with Prestige in the past approached us after two lenders working on the transaction for over 45 days couldn’t close the deal in a timely manner, the seller got impatient and gave the buyer a deadline.
Need: Immediate financing to close the deal before the seller walked away from the transaction.
Solution: In a week, Prestige did a field exam and closed the deal, saving the deal and enabling the client to save face with his buyer.
Digital Media Products and Services
Client: New Jersey Digital media products and services
Situation: Recently spun off from a much larger corporation this employee owned company was paying off a large note to the parent company and was in a cash-crunch.
Need: Cash flow to pay off debt and support growth
Solution: Prestige was able to provide the much-needed cash flow by financing their accounts receivables which enabled them to service their customers and pay off their note to the parent company.
Client: Northeast Staffing Agency acquiring another entity in the same industry.
Situation: Client was seeking acquisition financing and had been working with an asset based lender to finance the acquisition. The asset based lender was taking too long to close and the client was at risk of losing the opportunity to acquire the target company.
Need: Client needed financing in less than two weeks in order to keep the deal alive until they could close an asset based loan.
Solution: Within two weeks, Prestige was able to provide the financing needed to acquire the company and structured a bridge facility allowing client to graduate to ABL in 3 months.
Client: East Coast electronics distributor with $3 million in annual sales.
Situation: The distributor was an existing client of Prestige Capital and its management team was well known to Prestige. The Client’s owners made the strategic decision to focus their attention on other core businesses and wanted to divest the electronics distributor.
Need: Client’s senior management team approached Prestige to fund a management buyout.
Solution: Within three business days, Prestige refinanced the existing facility for the newly acquired company with the new ownership group.
Automotive Parts Manufacturer
Client: Midwest automotive parts manufacturer.
Situation: 22-year-old manufacturer was in aggressive acquisition mode during the downturn in the automotive industry.
Need: The client wanted to partner with a commercial finance source that could close complex leveraged buyouts in two weeks or less.
Solution: Prestige was able to close and fund seven separate transactions totaling $40 million in combined facilities. Within nine months, the client graduated to an $80 million asset based lending facility.