Location: BC, with locations across Western Canada
Industry: Office services
Annual revenue: $20,000,000+
Loan products: Cash flow term loan, acquisition line of credit, operating line of credit, corporate credit card
Total credit facilities: $7,100,000
Lender: Chartered bank
Primary goals achieved: Greater Flexibility, Additional Leverage
The client, based in the Okanagan region of BC, approached Lakepoint Capital for assistance in acquiring a subsidiary in Ontario. Both our client and the target company had predictable, sustainable earnings, making them attractive to lenders. Lakepoint sought 100% financing for the $2,100,000 purchase by leveraging the client’s strong EBITDA and relatively modest existing debt.
After running a thorough process, Lakepoint received six strong offers. Most notably, Lakepoint also successfully obtained a $1,500,000 acquisition line, which gave the client flexibility for future growth. This type of facility is rare for companies of our clients size.Â
The selected lender offered competitive pricing, no personal guarantees, and favorable terms, including a longer amortization on the acquisition loan. This flexibility extended to allowing Compilation Engagements for the target company and future entities, something other lenders were unwilling to offer.
By engaging Lakepoint Capital, the client secured the financing necessary to acquire the subsidiary, avoided restrictive covenants, and set the stage for continued expansion.
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