The Company
This is a Pacific Northwest-based company acquiring the assets of a precision machine shop in the aerospace, defense, and theme park industries.
The Situation
The acquiring company had the funds to close the acquisition but as is often the case with acquisitions, the company faced a liquidity gap. Additional working capital was needed to maintain operations, fund ongoing projects, and execute strategic growth initiatives.
An intermediary (a former sales team member of Celtic Capital) referred the company to us for an Equipment-Only Loan to provide the necessary post-acquisition funds.
The Solution
Shortly after the acquisition closed, Celtic Capital provided a $1,320,000 Equipment-Only Loan which allowed for immediate access to the working capital required to expand the business.
The Result
With the timely infusion of working capital, the acquiring company was able to avoid any operational disruptions and continue fulfilling existing contracts. The equipment financing has also enabled the owners to pursue new contracts which positions the company for substantial growth.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power, and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset-based financing solutions from $500,000 to $8 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at celticcapital.com.