Growth Financing & Recapitalizations
Rapidly growing companies quickly outgrow their capital structures. Unaware of the breadth of financing alternatives, companies take measures to maintain short-term growth, often resulting in hastily developed, inefficient capital solutions that are inconsistent with the Company’s long term growth plans. These reactive financial decisions are based on capital constraints that can significantly limit a company’s ability to grow their business to its full potential.
Tunstall works with companies to develop business plans without regard to capital requirements. Tunstall then develops the most efficient strategy and capital structure to enhance long-term value, comfortably aligning structure and capital providers with the growth strategy.
Case Studies
Auto Parts Supplier
$70 Million
The Situation:
The Company had outgrown its local bank and was missing business opportunities due to inefficiencies in its expanding working capital. Their local bank suggested a private equity partner to reduce the working capital strain.
Our Solution:
Tunstall sourced three financing partners (an asset-based revolver, senior term debt, and mezzanine financing), who teamed up to provide the Company with a comfortable capital structure as well as full support for its growth plan.
The Result:
By Tunstall assisting access to both alternative and traditional financial institutions, the Company was able to secure a non-dilutive capital structure tailored to fit its needs and enhance long-term value.
School Supplies Manufacturer
$35 Million
The Situation:
The Company was suffering from working capital constraints and an improper capital structure given the combination of its growth (more than 30% annually) and seasonality (60% of the Company’s revenue occurred during the back to school season).
Our Solution:
Tunstall helped to develop a financing solution that included a seasonal over-advance, allowing the Company to exceed its borrowing base as it built inventory to fulfill its seasonal order requirements.
The Result:
With a clear understanding of the financing alternatives, Tunstall was able to recapitalize the Company with a new capital structure ideally suited to serve its seasonal working capital needs.