Clients

Capital Solutions has assisted many types of businesses ranging from start-ups to Fortune 500, in diverse industries, including manufacturing, technology, financial services, transportation, building and construction, health care, and other professional services.

Most of our clients generate between $5M and $100M in annual revenue and have, or are considering the acquisition of, a base of tangible assets. Our clients are located throughout the United States, with a heavy concentration in the Midwest region. Read below to learn about some of the results we've helped clients achieve recently.

Restaurant Group

Local restauranteurs were looking for a new location in a growing area of the Kansas City marketplace. Capital Solutions worked with the city to secure a city-owned building that was on the historical registry. Having familiarity with tax incentives, we struck the following transaction that has turned into a tremendous success for the client and the city!

Total project cost including building acquisition of approximately $1.8MM
State and Federal tax credits secured in the transaction of approximately $500,000 which flowed back to ownership
Secured tax abatements for the 1st 5 years of operations of approximately $20,000/annually
Secured 25 years financing for the real estate asset and all improvements

35 Year Old Crane Rental Company

Long established crane rental company needed to be refinanced in the middle of the financial crisis in 2012. Their bank failed and the loan was tied to a lost share arrangement with the FDIC meaning that their acquiring bank could not help. The company had an abundance of collateral which led to a restructured transaction which transformed the company and secured its future.

We used the SBA 504 refinance program which was a 'new use' for the program at the time
The restructured debt service at the time saved the company better than $500,000 annually. This represented 10% of the company's then $5.0M in annual revenues.
The transaction was so impactful to the company that the CDC that issued the 504 bonds, submitted it to the United States Congress to allow for utilizing the 504 program for the refinance of debt in the future. The program was authorized by Congress for the use in refinancing in 2016

Apparel Company Acquisition:

Local industry executives were searching for an acquisition in the apparel industry. A 25-year-old company was identified and negotiations began to acquire the company and to finance operations. The company was doing $30M in sales at the time and hemorrhaging cash. Through a series of financial transactions spanning 3 years, the end result of those efforts is as follows:

We acquired the company and streamlined management and sales into a stable, $35M business
Acquired a local facility to house operations and secured tax incentives from the city to relocate to the present location
Secured a $13M line of credit to allow the company to float overseas purchases of product which requires approximately 120 day lead time
Minimized cash requirements to execute the purchase of the company

Private Hospital

We worked on with what was an entrepreneurial venture that started as a bariatric hospital. As the company grew and the healthcare industry changed, so did the companies capital requirements. As private insurance reimbursements stretched out, the company needed to secure a line of credit that would allow it to fund working capital requirements as it transitioned other products and services into its offerings. Additionally, the owner had other private enterprises that required refinancing in order to align its finances with the various entities.

We set up a $5.0M line of credit to fund working capital against the outstanding public and private accounts receivable
Refinanced various debt instruments into one facility of $2.3M saving considerable cash flow in monthly debt service
Cleaned up financing between the operating entity as well as other entities controlled by the owner totally $1.4M
Set up a guidance line for future capital expenditures so that the planning and execution of those plans could be seamless

3rd Generation Metal Fabrication Company

Company had been attempting to get its debt refinanced for better than 24 months. As bright as the company's prospects looked at the begining of our engagment, the missteps of the previous 3 years would be an obstacle to overcome. Working closely with ownership and management of the company, we gained a very deep understanding of all aspects of the companies business over the past 3 years as well as what the future might look like should we secure new financing. The company had a tremendous asset base which provided the lynchpins for a unique use of the 504 refinance strategy.

The company had both real estate and capital equipment that was long lived which allowed for long term financing
We were able to pair both the real estate and the equipment together into singular notes that absorbed better than $6.0M of existing debt
In addition to refinacing debt, we incorporated a $1.5M facility for new capital equipment that would improve gross margin by 3% to 7%
We were able to open a $5.0M line of credit to fund furture working capital requirments and allow the company to say 'yes' to opportunities
In 2017, the company was able to produce a vehicle in the United States which up until then, was produced out of the country
The company was awarded one of 3 awards nationally by the SBA for both job creation and retention
The first year savings in debt service was nearly $900,000 as a result of the refinancing structure

Hotel Properties

One of our clients that we refinanced their operating company, asked us to look at their out of state investment properties. They had 2 flagged hotels and was considering a 3rd property and wanted to take advantage of the drop in interest rates and take some cash off the table. The use of the cash out was for both retirement as well as equity contribution to the new venture.

Between the two properties, we secured new 1st mortgages totaling $10.4M
We locked in interest rate SWAPS on each property for 10 year fixed rate financing and 25 year amortization
The rates on the refinance with close to $3.0M in cash out were significantly less than the existing debt that was refinanced
The cost of that capital that will be contributed to the new project will give an overall less than market cost of funds on the new project