Private equity supported company offering non-asset based third party logistics solutions to shippers and carriers
Issues -- As an adjunct to one of its recent strategic acquisitions the company saw a significant opportunity to provide both its existing client and potential new clients with a receivables financing option not currently offered by its competitors. However the receivables financing business required a different financial structure than it employed in its existing operations.
Solution -- Develop and implement a new financing strategy using the assets of the acquired company to obtain financing separate from the assets of the highly leveraged operating company parent. The company established a separate subsidiary to hold the highly liquid and short term financial assets.