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Deal Spotlight!
FINANCED CASE STUDIES
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LEVERAGED ACQUISITION
FINANCING
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A very successful
skin care medical practice was available on a share purchase. This
practice showed very good cash flow and operating results for the
last 2 years. The sales price of $990,000 consisted of available
tangible assets valued at $495,000 with balance of the purchase
price representing goodwill. As a result, the program called for a
significant part of the financing to be on an unsecured basis.
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PROGRAM
Purpose
Share purchase
$ 990,000
________
$ 990,000
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Source
Term Loan $ 740,000
Shareholders
250,000
________
$ 990,000
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TERMS & CONDITIONS
Ø
Tem Loan facility charged
a rate of Prime plus 1.25% over a 7 year term secured by equipment .
FEATURE & BENEFITS
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Leveraged financing.
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Financed $495,000 in Goodwill a non-traditional asset.
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Unsecured financing of $350,000.
OTHER
Ø
NetFinance placed and sourced all the funding for
the client.
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