Financial Expertise Helps Client Triple and Sell its Business in 3 Years
Challenges:
The client was a $5 million sales company that imported and distributed products from China. They had a five-person office in the United States and a small office in China. Two of the client’s competitors went bankrupt, opening up a huge market opportunity. The client was using QuickBooks but did not have adequate financial reporting nor did they have the expertise to present financial data to banks and other institutions. The client’s lender was in the process of dropping them as a customer.
The client was a $5 million sales company that imported and distributed products from China. They had a five-person office in the United States and a small office in China. Two of the client’s competitors went bankrupt, opening up a huge market opportunity. The client was using QuickBooks but did not have adequate financial reporting nor did they have the expertise to present financial data to banks and other institutions. The client’s lender was in the process of dropping them as a customer.
Solution:
The client reached out to Lauber Business Partners, Inc. because of work we had done with another client.
The client reached out to Lauber Business Partners, Inc. because of work we had done with another client.
- Lauber modified the clients financial reporting by creating systems to allow proper reporting to its bank.
- Lauber assisted the client in securing asset-based financing. This allowed the business to grow significantly.
- Lauber also assisted with the sale of the company.
What this meant to company:
- Implementing strong financial reporting and proper asset-based lending systems enabled the client to secure asset-based financing, allowing them to capitalize rapidly on the market opportunity they saw.
- The business grew from $5M to $18M in sales in three years.
- The business owner was able to sell the business for a price equal to 7 times EBITDA.
