Refinancing/Consolidation Helped Company Make It Through Tough Time

How Platinum helped owner to get positioned for a strategic buyer


A 25-year-old global manufacturer and distributor — with 1200 customers located in 80 countries — experienced a dramatic reduction in revenue. The bottom line suffered and the company’s long-term, senior- secured lender called its line of credit, leaving the owner with limited access to working capital until a replacement source could be obtained.

Struggling with unprofitable operations and an eroding revenue base, the owner engaged Platinum Group to find a way to refinance the company. The owner sought the advice and counsel of Platinum because he lacked the depth and experience within his employee ranks.


  • The company’s long-term, legacy business was declining at a 7% annual rate as customers were upgrading to newer technology.

  • Company was operating inefficiently through multiple locations, consuming (rather than generating) precious working capital.

  • To find a new lender willing to refinance, the company needed to develop a growth strategy to enable it to project future profits.


Platinum quickly identified those issues that would impede a successful refinancing and pragmatically sought their resolution. Operations in multiple locations were consolidated, resulting in a more efficient business with a reduced cost structure. Platinum helped facilitate the acquisition of a software company that provided critical technology, which repositioned the business for the future while diversifying core product offerings. Platinum led the refinancing, securing a new line of credit that enabled the existing bank to be paid in full and for the company to move ahead with confidence.


After 12 months of operating with the new financing, the owner is now positioned to exit the business. Platinum has negotiated two Letters of Intent from prospective buyers and a sale is in process to a strategic acquirer.



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