Consolidation of Four Companies Led Consultant to Celtic Capital

The Company
This company is a California-based provider of facilities management services.

The Situation
This deal involved the consolidation of four separate operating companies into one holding company. The four companies included one that provided nurse staffing for hospitals and three others that provided various janitorial, landscaping, minor project management work and some construction work for apartment complexes, hospitals and commercial buildings. Management was looking to consolidate the financing into one relationship and obtain a larger credit facility. The deal was referred to us by the holding company’s consultant with whom we have worked successfully in the past.

The Solution
Challenging to the deal was that the consolidation of the four entities was very new at the time we were called in so we had to look past the timing of the consolidation and dig through “the noise” to see how each entity’s accounts receivable performed.

The nurse staffing company was financed by a factor, one company was with a fintech lender and the other two companies were new to outside financing. Celtic Capital paid off the two lenders and extended a $2MM Accounts Receivable Line of Credit (larger than the original Line) to help cover the two companies that were self-financing.

The Result
The consolidated company is expecting significant growth during 2018 and Celtic Capital’s larger credit facility will help it achieve its goals. As the consultant moves to assist other businesses, we will continue to work with him to help those clients meet their financing and business goals.

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, or visit us at