Service – environmental & engineering services
- In business since 2004, this company has built an increasing & loyal customer base.
- Provides expertise in all aspects of property condition & environmental impact assessments to building owners, lenders and regulatory authorities.
- Client is expanding its operations and has decided to double the size of their rental premises. As well, total office renovation & upgrade is underway.
- History of profitability has enabled company to self-finance itself to date.
- First ever line of credit in support of the increasing amount of accounts receivables.
- Term facility («SBL» – Small Business Loan Program) obtained to finance the renovations & equipment purchases.
- Working capital loan secured to support the expected continued sales increase.
Retail – chain of retail stores (shoe & clothing)
- Since the opening of the first store in 1993, company has now expanded to 6 locations with 2 additional openings expected in the next 12-18 months.
- Carries well known brands, including: Rudsak, Mackage, Lacoste, Michael Kors, UGG, Levi’s and BCBG.
- The three (3) new stores opened since 2009 have required important leasehold improvements and these have been paid mainly out of the company’s cash flow.
- Furthermore, higher inventory levels and greater sales must be supported.
- Line of credit in an amount +75% greater allowing for stronger cash flow year round.
- Refinancing of the existing four (4) long term loans at higher «loan-to-values» and better pricing.
- Working capital loan, from a government lender, providing the required additional support.
Designer & manufacturer – various lighting products
- Manufacturer for over 30 years of recessed lighting, pendant & wall lamps, ceiling fixtures, track lighting and spots.
- Sells to more than 500 well known renovation department stores in Canada, USA & Mexico.
- Company has a signed purchase offer on a property that would become owner-occupied.
- Client looking to benefit from available government grants for such investment projects.
- Ohana Capital was mandated by the client’s chartered bank in order to source the available grants for their client.
- Non-refundable government grant in the amount of $250,000 secured & allowing the chartered bank to solidify the relationship with their client. At the same time, the bank was able to finance the purchase of the property.
Retail – used car dealership
- In business since 2009, sales are growing at a rapid paste and the fleet size has reached 70 cars.
- The shareholder’s initial capital injection and profits generated to date have allowed dealership to be self-financing up until now.
- First ever line of credit providing the extra working capital needed.
Designer & manufacturer – premium / designer denim («ExistCo»)
- Very successful company experiencing explosive sales growth in the last year.
- Founded in 2000 & sells to well-known retailers, including: Reitmans, Holt Renfrew, Roots, RW&CO, Addition Elle & Stylexchange.
- Raw material is imported from a number of suppliers globally with the manufacturing outsourced to local sub-contractors.
- Company has developed proprietary products that are sold to retailers across Canada, USA, Europe & Asia.
- An important expansion project is in the works and client’s products are gaining more and more popularity.
- Line of credit five (5) times more important than the one currently extended by the client’s bank.
- Loan guarantee, in favor of the new lender, obtained by a Canadian government agency facilitating the financing.
Manufacturer (start-up) – premium / designer denim («NewCo»)
- Founded by the existing successful business referred in the above slide. (ExistCo)
- ExistCo’s main production contractor has recently decided to close shop which leaves ExistCo without critical cutting & sewing capabilities.
- NewCo will become the manufacturing arm of theExistCo, thus, eliminating any limitations & risks associated with outsourcing its production.
- This expansion project requires an important CAPEX (Capital Expenditure) program.
Financing & Grant obtained:
- Line of credit financing the day to day operations.
- Term facility enabling the purchase of machinery & equipment to set-up the plant as well as to complete the leasehold improvements.
- Term facility permitting the purchase of the manufacturing facility.
- Loan guarantee obtained by a government partner facilitating the transaction.
- Non-refundable government grant of $200,000.
Service – commercial dry cleaner
- In business since 2007, company recently moved to new & larger premises.
- Client base comprised mainly of hotels, motels, restaurants, dining halls, convention & exhibition halls.
- Un-financed CAPEX related to the move is putting pressure on the company’s cash flow.
- Bridge loan from a private lender alleviating pressure off the client’s cash flow.
Manufacturer – plastic trays & containers
- Founded in the 1970’s and serves the Canadian food manufacturing sector. (Frozen food, baked goods & salads)
- US plant opened in the last few years has yet to produce positive results.
- A restructuring plan has been put in place and positive results are expected in 2012.
- Owner examining various alternatives in order to rectify the situation.
- Analyzed the company’s current financing arrangements with various Canadian & US lending institutions.
- Recommended various financing alternatives that would provide additional funds pending positive results from the restructuring plan.
- Negotiated and presented various term sheets from conventional (chartered banks) and alternative (Asset-based-lenders) lenders.
Service – construction related business
- Services offered include demolition, decontamination, asbestos removal & mold cleaning.
- Client base includes general contractors, government agencies, hospitals and many «McDonald’s» restaurants.
- Continued sales growth and new important government contract recently signed with «Correctional Services Canada».
- Operating line of credit, including: Amount +50% greater than the existing line of credit, better pricing and more aggressive borrowing power on the A/R.
- Two (2) term facilities, from different non-bank lenders, providing the required extra working capital to support the expected continued sales growth.
Service – marketing agency
- Since 2006, this company offers retail, experiential and permission marketing services.
- With offices in Quebec & Ontario, this business has an impressive client list comprised of large / well know corporations including: National Bank of Canada, Labatt, Sleeman, Merck, Bell Canada, Kruger, Danone, Bacardi & Hydro Quebec.
- With certain clients taking over 120 days to pay, the current line of credit doesn’t provide the required borrowing power for this growing business.
- Line of credit in an amount +40% greater with more aggressive margining conditions on the A/R. (90% margining for A/R up to 180 days) – Insurance policy on the A/R obtained, thus facilitating this more aggressive borrowing base.
- New term loan used to refinance the existing three (3)term facilities at better terms & conditions.
- Factoring line of credit from a conventional lender providing further cash flow support if needed.
Manufacturer & distributor – landscaping products, bricks, stones & pavers
- Business acquisition transaction.
- Established since the 1960’s, this successful group of companies is looking make another acquisition that would solidify and increase their product offering & market share.
- The buyer is under a very tight deadline to complete the purchase and a quick financing solution is needed.
- Bridge loan from a private lender permitting the transaction to proceed to the «closing» phase.
Retail – used car dealership & full service garage
- Founded over 40 years ago, this company is one of the most important player in the used car market in the Montreal area.
- The garage division provides upkeep and repair of vehicles, beauty care, body and parts sales.
- Substantial losses in 2007 & 2008 and historical unfinanced CAPEX, have weakened the financial ratios of the company.
- However, continued sales growth is in place and profits are back.
- Term loan refinancing the existing equipment & providing the extra working capital required to maintain a good cash flow year round.
- Operating line of credit in replacement of the one currently in place.