INDUSTRY – Transportation
COMPANY – A trucking company hauling specialized freight throughout the U.S.
PROBLEM – The company suffered serious cash flow problems from previous years losses. After a quick evaluation, we determined this company only had one week’s worth of cash to run its business and would likely not even meet payroll expenses.
RESOLUTION – We acquired warrants in the company as our equity participation incentive. We immediately factored all accounts receivable to provide sufficient working capital to allow sufficient time to implement a turnaround. After making several operational changes, the company was once again operating cash positive. After 10 short months, the company was sold to a strategic buyer in an all cash deal. This provided the company with enough cash to pay all its debt including a cash distribution to its owners.