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06-22-2016, 02:08 PM #1
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,484
Just out of curiosity-What would you do or suggest for the following:
DF,
Just out of curiosity I would like to see what people would offer to a Company or suggest to a company. Before some of you go crazy asking to fund the deal....it's not a live deal. It is a scenario and I am curious what some of you would offer or suggest the Company do:
-5 Year old Manufacturer of consumer products sold to large retailers and distributors in the US. All the customers are credit quality.
-The Owner/Operator owns 100% of the Company, but had some credit issues.
-The Company became profitable last year. Due to unprofitably and owner credit history the Company is un-bankable.
-Company generates over 35Mil in revenue and slightly profitable.
-AP has become stretched with critical suppliers due to lack of working capital.
-Demand from customers is stretching working capital. If the Company had access to working capital they could conceivably hit $40mil in revenue over the next 12 months and be very profitable. Company operates on a "sold-out" basis. They have to wait for cash to come in before manufacturing more products.
-AR outstanding is $3.5Mil... nothing over 90 days with all credit quality debtors.
-Company has raw materials and finished good inventory of $100K-Perpetual inventory system in place. Company does not have enough working capital in place to build sufficient raw goods inventory and has very little finished goods on hand.
-Company has about $300K in equipment used to manufacture products.
-Company operates from a rented facility-no real estate.
As an investor/lender what would you potentially off the Company?
If you are a broker or advisor what would you suggest the company do?
What would be the expected cost of capital?Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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