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How a $600 Million Telescopic Tractor Company Raised a $60 Million Line of Credit in Three Months

Situation

Having your CFO leave abruptly is never good. Having it happen while you are in the middle of trying to raise a $60 million line of credit ahead of selling the business is, to say the least, poor timing.

The company needed help obtaining the line of credit and also fixing cash flow issues so that the sale could go forward as planned. This was on a tight deadline to ensure the sale. Within three months, they had $60 million and the sale provided good ROI to the shareholders.

Actions

Due to the scope of the problem, our MetaExpert worked with the company full time for three months. In fact, they asked him to stay on as Vice President of Operations until the sale was finalized, which lasted another year and a half.

As interim CFO, he had to come in and assist their executive team and their board of directors, who were venture capitalists and thus didn't always have the same goal as the bankers. They already had all of the expertise they needed, but they needed somebody to bring it together and also deal with Wall Street. This was a publicly-traded company, so there were a lot of outside actors. It required people skills and the ability to bring disparate stakeholders together. It also required a strong focus on earnings per share, because that was how it was made to look good.

Results

Ultimately, MetaExpert achieved the goal set by the company of raising the $60 million line of credit. Thankfully, he was dealing with some very competent people with no weak links or other issues. However, everyone had different levels of concerns and risks.

It only took three months to raise the line of credit and to merge with the larger company. Everyone involved got the ROI they were hoping for!

Return on Investment

The ultimate ROI for the company in this case was the final sale of the company and increase in value of the shares. The $60 million that came in was small compared to the $600 million at which the company was, in fact, valued.

This was a short-duration project with a long-term ROI.

interim CFO working with team on finances

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