Established in 1983 the Company grew into a substantial regional public warehousing, distribution, packaging and transportation services provider operating a 306,000 square foot facility in Central Illinois. A wholly-owned subsidiary of a large holding company, this 3PL company consistently provided the parent with positive cash flow and few headaches over the years.  It did, however, become somewhat of a stepchild as the parent company was never able to execute their original plan to expand this part of their holdings and after the loss of a major customer, the decision was made to sell the 3PL business. 

 Two very successful entrepreneurs built a company which provides homeowners with replacement windows, doors and siding. The Company has grown by multiples from its size when they acquired it and generates very positive cash flow. The owners posed the question: “Can we establish a platform in another industry which will allow us to leverage the marketing knowledge and resources that we have gained?” The team hired Focus Capital Advisors to advise them on the strategy, help them to focus in on a particular industry, identify acquisition targets and get the deals closed.

Founded in 1926, this foodservice equipment manufacturer (the “Company”) had evolved into an extended family business that had reached its fourth generation of family members. The Company had become best known for its product lines of fryers and dough machines used by chain restaurants and foodservice operations.

As the third and fourth generation family members began to examine the business climate, they realized they were facing challenges that previous generations had not encountered. To begin with the facility was significantly larger than needed. Earlier generations had used this facility to manufacturer all of the company products however, sales volumes were now lower and manufacturing costs were high compared to competitors making similar products overseas. Faced with slowly declining sales and legacy costs of the family business, the owners knew that outside help would be needed to be able to continue the business and grow to the next level of success.

$3 million Working Capital Line of Credit
 An Illinois-based steel fabricator was going through a cyclical downturn and their Chicago bank was recoiling from extending their line of credit.  After 18 months of losses, the credit was transferred to workout and Francisco was referred in to prove his metal.  He structured a working capital facility through an asset based lender to take the bank out whole, allowing the company to contract its balance sheet and weather the downturn.  Two years later they moved into a 150,000 state of the art facility and expanded their services.

$5 million Purchase Order Financing Facility
A successful distributor found itself losing money.  Significant growth over the past two years resulted in over expansion, operating problems, and a deterioration in the company’s relationship with its lender.  Losses required even more financing at a time when the company was entering its peak sales season and on the verge of profitability.  Large purchase orders had been received from its present and expanding customer base.  Additional financing was urgently needed to acquire inventory to satisfy the purchase orders, but the bank’s aggressive program could no longer be justified due to the previous losses.  Instead of a turn down, the bank agreed to continue with its original working capital line, secured by inventory and receivables.   Our funding partner provided purchase order financing, the proceeds of which enabled three successive $5mm purchases, enabling the company to increase sales, and return to profitability.

$3 million Purchase Order Financing Facility
 This Midwestern client had an exceptional opportunity to do business with a major retailer.  The company received an extremely large order, well beyond its expectations, and production capabilities.  To complete the order, the company needed to find an alternative source of product to supplement its production capacity, which would require additional financing.   An offshore manufacturer, able to provide product at the desired price points was found, but insisted upon letters of credit, which required additional capital.   While additional equity was an option, the client didn’t want to dilute ownership.  The existing bank agreed to a higher line limit to accommodate the increased receivable levels, but refused to finance the increased inventory requirement.  Our funding partner was brought in and structured a $3mm purchase order facility, secured by the purchase orders and inventory, resulting in 100% of inventory financing.  The additional capital, made available through purchase order financing  allowed the client to obtain the necessary inventory, and increase sales and profits, while retaining a valuable customer.

$10 million Working Capital Revolver
 This St. Louis retailer was going through a cyclical and seasonal rough patch as it racked up losses for 2 years in a row.  Its banks weren’t amused by their turn in fashion and referred in Francisco who arranged for a $10mm working capital line which took the bank out whole and gave the company a three year facility to fight another season.   The facility was secured by store inventory and was based on a specialty appraiser’s valuation and required close monitoring of the collateral.

$14 million Working Capital Revolver and Equipment Term Loan
This Utah based interstate trucking company was being threatened with liquidation by their existing lender due to 3 years of losses.   Francisco structured a 3 year credit facility to haul it out of the lender’s workout portfolio and give the company a new lease on life.  The facility was fully secured by receivables and the liquidation value of the trucks and the lender got their loan repaid in full.

$10 million Term Loan
Another Michigan based private equity group was attempting to close an acquisition of an auto parts stamper in Ohio, creating a large integrated supplier of automotive exhaust systems.   While they had no trouble sourcing financing for the working capital portion of the deal, they were coming up short on the term loan component.  (One can say they were near exhaustion.)  Francisco introduced this opportunity to a New York based equipment lender who stepped up for a $10mm share of the credit, allowing the acquisition to go forward.  This was a combination equipment and cashflow loan and was based on the lender’s familiarity with the auto business.

$40 million Working Capital Revolver
This Iowa based copper fabricator was owned by a Korean company and was being pressured by their commercial bank.  The lender was extending unsecured credit and was becoming uncomfortable with the credit as a result of falling copper prices, a faltering Korean economy which put the parent guaranty into question and two years of losses.

$25 million Revolver and Term Loan
 A Michigan based private equity group was attempting to purchase a US based manufacturer and marketer of bicycles.  Francisco arranged for an asset based lender along with another bank to extend a $25mm facility with a significant overadvance against collateral. 

 Founded in 1991, this Contract Medical Device Manufacturer (the “Company”) had evolved into an integrated supplier of OEM Silicone Medical Devices and Components. Built on superior on superior quality and a solid commitment to meeting the challenge of any silicone application the owners had attracted a blue chip customer and talented team of people.

The Company had the equipment and skills to build the tools and prototype parts as well as handle the production run all under one roof. The facility located in the Midwest had ample capacity and talent for expansion and needed to find the right buyer that could see the opportunity to take this business to the next level of success.  However, the financial and management systems were not sophisticated and could potentially be a problem in the sale process.

 Martin Craig was in a leadership role with an east coast law firm that was looking for additional sources of revenue and profits. And better yet a recurring revenue stream that created value long term.  He led a strategic initiative to expand the practice beyond traditional legal work and created the nation’s first Medicaid eligibility service provider.  Strategically he continued to help add additional services and grew non-legal revenues to $65 million annually. At that stage, the business had gained such significant value it was ideal for a private equity recapitalization allowing the partners a tremendous return on investment and very large capital gain distribution.