Celtic Capital Funds Acquisition When Business Seller Decides To Cash Out

The Company

Established in 1978, this Company is a Eastern Midwest fabricator of metal parts used primarily for the automotive industry. It was being acquired by a family that is a current Celtic Capital borrower with another business.

The Situation

The Company owner (and founder), in his eighties and in ill health, decided to cash out. Another of our borrowers cut a deal with the owner and approached us for the financing needed to acquire the stock of this successful business. An interesting aside: the owner never had any debt on the Company. He never had a bank loan and never borrowed on the real estate (he owned the building in which the business is housed).

The Solution

Leveraging the assets to assist in the acquisition, Celtic Capital provided a $2,200,000 Accounts Receivable Line of Credit, a $500,000 Inventory Line of Credit and a $414,000 Equipment Loan.

The Result

The Company has always been profitable and expectations are for that to continue with its new owner.

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 the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 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 www.celticcapital.com.