Our client, an aftermarket auto parts distributor headquartered in Ottawa with operations across the US, had an opportunity to purchase one of North America’s largest aftermarket auto parts distributors based out of Texas. The target was in financial distress, so the deal needed to close quickly, and our client required financing to purchase and operate the target.
WELCH CAPITAL PARTNERS’ APPROACH
Time was of the essence on this deal more than most. The deal required both M&A advisory along with securing of financing. Given the target’s financial state and the tight timelines, we knew the deal would not qualify for traditional bank financing and thus we focused our efforts to find an alternative financing solution. The target’s accounts receivables and inventory made it a strong candidate for asset-based lending from an alternative lender. Welch Capital Partners created a banking package and ran a competitive process amongst the top ABL lenders in Canada and the US. A commitment to finance 100% of the transaction and provide a $16M USD operating line was received within two weeks.
WELCH CAPITAL PARTNERS’ ADVANTAGE
We leveraged our network of alternative lenders to find a financial partner for our client in short order. Once the financing was secured, we were able to guide our client through the final negotiations of the acquisition and ultimately to closing the transaction.
“I would like to extend a special thank you to Welch Capital Partners and their team, and to Connor McGarry for his 24/7 support, and for their expertise, dedication and contribution throughout the entire process every step of the way in the finalization and completion of this transaction.”