Leverage Buyout

By utilizing factoring, buyers can turn the accounts receivable of a target company into immediate cash flow allowing them to acquire the company and provide for ongoing capital needs.

  • Electronics Distributor

    $ 500,000


    East Coast
    • 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

    $ 40,000,000


    • 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.

  • Novelty Product Manufacturer

    $ 2,250,000


    • Client: Massachusetts-based Novelty Product Manufacturer.

    • Situation: 11-year-old company was being liquidated by its existing lender.

    • Need: One of the company’s existing owners was seeking to acquire and re-start a profitable division of the company.

    • Solution: Prestige provided financing to fund the acquisition of certain property of the liquidating estate from the lender and support future growth.

  • Call Center

    $ 5,000,000


    • Client: Ontario, Canada-based call center with $50 million in annual sales.

    • Situation: Ten-year-old call center was being acquired by a U.S. investor group.

    • Need: The investors were seeking to leverage the receivables of the call center to complete the acquisition and provide ongoing working capital.

    • Solution: In less than two weeks from the initial inquiry, Prestige provided a $5 million factoring line, allowing the buyers to complete the cross-border acquisition with a nominal equity investment.

Similar Pages: Dip Financing | Bridge Financing | Invoice Factoring