Privately held company achieving extraordinary growth and Owners’ looking to optimize their exit opportunities.
Situation | Privately held company had achieved extraordinary growth building homes under a scattered lot strategy in southwest Florida. The business succeeded beyond expectations and the owners were looking to sell.
Action | Ran sell-side financial and operational due diligence including transaction documentation for 1st Home Builders of Florida, a $360 million scattered lot developer, to Hovnanian Enterprises (NASDAQ: KHOV). Restructured treasury and cash management procedures for 100+ active construction loans with various lenders, which reduced the average daily cash balance from $5 million to under $100K.
Results | Successfully closed the Acquisition. Structured and negotiated $55 million revolving debt facility with Wachovia Securities. Modifying treasury department process reduced cash needed to fund the organization and resulted in an estimated $360,000 per year.
What we loved | It was great to save the owners significant capital in the closing / due diligence process. Working with others on the team and being able to fill-in where needed to ensure consistency and help create value.
Core competencies | M&A; Financial Operations; Raising Capital