CASE STUDIES
In this section, we showcase our expertise across various industries through detailed case studies. Each story is a testament to our commitment to excellence, revealing how we've overcome complex challenges to deliver significant results for our clients.
Deal: $5,500,000
Industry: Services
Transaction:
● Management Buyout (MBO) 50% of the remaining shares of a service company.
Features:
● 100% financing
● Fixed rate term loan for buyout
● Amortization of 10 years
● Line of credit for day-to-day operations at prime + 0.50%
Benefits For The Client:
● Extremely competitive interest rate
● Fixed rate with ability to repay 20% annually without penalty
● Removed balance of sale for a reduction in purchase price, by having the ability to pay 100% of the purchase up front
● Funded file within 45 days
Deal: $3,000,000
Industry: distribution
Transaction:
● Branded distributor was in talks with large retailers and needed funding to support potential purchase orders
Features:
● Authorized Revolving facility that was able to scale with orders when received-preauthorized facility
Benefits For The Client:
● The facility gave the client the ability to take orders without fear of non delivery
● Scalable business model
● Client negotiated a discount of 2% from suppliers by offering a swift payment
Deal: $2,500,000
Industry: Wholesale
Transaction:
● Dividend re-cap, a cashflow loan to allow for ownership to withdraw funds from the business for personal investment
Features:
● The loan was amortized over 5 years with the ability to speed up payment (at discretion of client)
● Preferred interest rate
● No Personal guarantees
Benefits For The Client:
● Client controls cashflow
● Client grew his personal net worth (separated Church and state)
● Kept control of his business while capitalizing on a portion of its intrinsic value
● NO personal guarantees
Deal: $1,600,000
Industry: Manufacturing
Transaction:
● A manufacturer purchased equipment for automation. Shaffer Capital facilitated financing for 125% of the cost of the machinery
Features:
● Financing included the soft costs-engineering, setup costs
● The equipment was 50% on a no interest basis and 50% at preferred rate
● Amortization of 12 years
Benefits For The Client:
● 125% of the costs
● 50% of the financing was interest FREE
● Extended Amortization
● Increased production capacity by 25%
Deal: $18,000,000
Industry: Medical
Transaction:
● Bridge loan interest only for the purchase of a medical facility
Features:
● Term 2 years
● Based solely on the target no related corporate guarantees
Benefits For The Client:
● Was able to close a large scale transaction without affecting their existing portfolio
● Interest only transaction assured extreme excess cashflow for easy exit of bridge
● Increased overall value of the enterprise
Deal: $1,250,000
Industry: Restaurant
Transaction:
● Leasing facility for Leasehold improvements and equipment of new retail opening
Features:
● Lease with buyback of $1 Amortized over 8 years
● Minimal personal guarantee
Benefits For The Client:
● Pays the trade and suppliers directly
● Preferred tax treatment
● Reduced personal guarantees
● Swift loan processing
● Extended amortization
Deal: $500,000
Industry: Construction
Transaction:
● Unmargined line of credit for Electrician
Features:
● Unmargined- client has access to 100% of the funds at all times
● Prime + 0.75%
Benefits For The Client:
● Unmargined facility
● Higher risk industry able to get funded
● Reduced personal guarantees
● Able to bid on larger contracts
Deal: $3,000,000
Industry: online retail
Transaction:
● Line of credit for a direct-to- consumer retailer
Features:
● Margin on inventory at 70% with no limit on value of line
● Very minimal personal guarantee
● Prime+0.50%
Benefits For The Client:
● Ability to increase sales by over 40% by tapping into more inventory
● No limit on inventory to line margin card
● Increased percentage allocation on inventory
● Competitive pricing
Deal: $4,000,000
Industry: Distribution
Transaction:
● Distribution company was holding higher priced inventory due to the supply chain issues of COVID. The bank pulled the day-to-day facility
● Shaffer capital found alternative financing- Asset based lending (ABL) to payout the line of credit and help facilitate the ongoing concern of the company
Features:
● High value attributed to the Accounts receivable and inventory
Benefits For The Client:
● Ability to restructure
● Great terms on inventory and AR
● No need to re-inject equity
● Competitive pricing