Recent Transactions



(1) Importer / Outdoor Furniture and Umbrellas (2021)


Challenge

The company's primary customers (cruise lines, hotels and restaurants) were severely impacted by the COVID pandemic causing sales to drop significantly. Management pivoted to focus on a B to C business model that resulted in their ability to be profitable in 2020. As their traditional business began to return in 2021 and growth opportunities became available, management engaged GCA to help them obtain financing.

Solution

With GCA's assistance the Company was able to obtain both a working capital line of credit as well as equipment financing. The Company now has the sufficient financing to fund the rebound in their business, deal with the supply chain issues and look to acquire other related businesses.





(2) Distributor / Handheld Electronics (2021)


Challenge

This company led by a young aggressive entrepreneur has built a growing business of distributing hand-held consumer products to retailers and distributors throughout Mexico and Central America. This is a low margined business combined with its growth has resulted in a highly leveraged balance sheet. The incumbent bank informed the owner that they would not be able to renew their line of credit. Since the company is highly dependent of their funding from their bank, they enlisted the help of GCA to help them find a lender that would be able to fund their projected future growth.

Solution

GCA was able to bring this opportunity to well over 20 lenders within 30 days of being engaged. After reviewing several term sheets and negotiating with a few potential lenders, GCA was able to bring in a lender that specialized in cross border financing and provide both a larger line of credit as well as a Purchase Order facility that together nearly doubled their borrowing capabilities and put them in a position to double their business within two years.





(3) Acquisition of agricultural implements distributor.


Challenge

Heavy inventory reliance and large real estate component.



Solution

GCA brought in a non-bank ABL lender providing real estate financing and the deal closed with no junior capital of outside equity required.


(4) Food manufacturer needing financing for projected sales growth.


Challenge

Company was acquired a year earlier with no outside debt. Initial year showed significant operating losses but projections in year 2 showed sales increasing fivefold.


Solution

Company was not able to obtain bank financing but with strong customer base; GCA was able to bring in a factor that accelerated cash flow and an uninterrupted supply of raw materials.


(5) Consumer audio products sold through e-commerce channel.


Challenge

Although the company had performed well during its first two years; they needed seasonal financing for season needs.


Solution

After extensive review of capital markets; GCA located a bank that was comfortable in financing a company exclusively selling directly their products through the internet.


(6) Digital marketing firm needing both working capital and acquisition financing.


Challenge

Ownership looking to acquire other firms and expand business.



Solution

GCA brought in several lenders that provided debt financing that repaid subordinated debt and dry powder to acquire complementary businesses.


(7) Management buyout of internet based real estate business.


Challenge

Management had limited amount of equity to invest and the company had no tangible assets to leverage for a loan.



Solution

GCA was able to negotiate on behalf of the management team to get the seller to take a subordinated note as part of the capital stack and obtain an SBA loan for 80% of the purchase price.


(8) Established company recently acquired another business and won a large government contract that required them to place deposits with supplier.


Challenge

Although existing business was very profitable the incumbent lender could not provide the funding to make deposits for this large order that was to be delivered over the term of the contract.


Solution

GCA found a source of PO financing that was able to provide the company financing to cover all the costs of manufacturing and delivery of the product to the customer. The existing line of credit was then drawn down to cover the AR and repaid with proceeds of the collections.


(9) Company was asked to find new lender after existing bank was acquired. The financing was included a line of credit as well as a mortgage.


Challenge

The business had posted losses in each of the last two years and had breached various covenants under their loan agreement.


Solution

GCA was able to find a replacement lender for their line of credit and a separate source for the mortgage. Building had appreciated in value and owner was able to shore up balance sheet with additional proceeds from new mortgage.