Achieving M&A Goals

The Problem

Our client, an M&A group, owned a portfolio of luxury restaurants. While constructing their 7th out of 10 locations, they encountered an unexpected slowdown in their construction process that would delay their target open date.

They contacted their bank for an overadvance on their facility, but the request was denied. An equity transaction didn’t make sense for the client, so they began to explore their private credit options.

How National Business Capital Helped

Our client needed funding within a week to stay on track. They also needed a subordinated solution to preserve their bank line and provide the dollar amount needed to resume construction. While others in the industry may shy away from complexities like this, National Business Capital dives right in.

The client’s Business Finance Advisor, John Salvador, leveraged National Business Capital’s longstanding lender relationships to negotiate an offer that made sense for the client’s M&A goals. It wasn’t mezz debt; Instead, the client moved forward with subordinated revenue-based financing and a term loan totaling $4.1 million in combined capital, which arrived on time and enabled a timely grand opening.

Where They Are Today

Their 7th restaurant location projects $3MM in profits – in year one. 50+ new jobs were created with the opening of the new restaurant, adding to the hundreds of jobs created by this singular M&A group in the last few years.

With their restaurant completed, opened, and running smoothly, our client had a clean slate to begin planning their 8th location.