FDR

Challenge:

  • The company is a manufacturer of high quality vacuum components. After completing a lengthy installation of a new inventory control system, the company found itself with huge writedowns, half of their prior revenue and negligible operating income.
  • The company’s existing lender was growing fatigued and wanted to be refinanced out of its loan.
  • Existing management was interested in buying out the current owner, but lacked significant equity capital and did not want a controlling equity partner.

Solution:

  • Libra was able to sell management’s vision and structure a one stop financing that took out the existing lender, provided the seller a satisfactory exit, and allowed management to keep a majority interest in the company.