Banking Solution Showcase 

Why Does the Seller of a Manufacturing Company Recommend Triad Business Bank for Buyer Financing?

Problem:
This transaction was highly complex, requiring coordination between five different attorney teams. Underwriting had to account for the introduction of a new product line, adding another layer of intricacy to the deal. Additionally, there were significant ramifications on both the transaction and the transition due to the buyer’s decision to retain the same legal entity and tax ID.

Banking Solutions:

• $2.2 million buyer financing for acquisition of the manufacturing company
• $1.8 million financing to acquire the related manufacturing facility
• $500,000 working capital line of credit
• Operating account
• Treasury Services – Remote Deposit, TSOL, and Positive Pay.
• Merchant services

A Triad Business Banker’s (TBB) long-time client relationship was selling their business and wanted his TBB banker to be involved with financing the purchase for the buyers because it was a complex transaction and he had confidence in the experience, fortitude, and advocacy of his banker and his team to make the transaction happen and to be an asset to the buyer during the transition and into the future.

Due to the complexity of the transaction, negotiations between the buyer/seller took several months. Underwriting the buyer required combining the existing performance of the seller with the new product line being added from the buyer’s business. To ensure the appropriate structure, the banker and his credit team made several refinements and clarifications throughout the process. The banker’s assistant who assisted with closing documentation, had to manage the process with 5 attorney teams, providing prompt responses, delivering payoff requests for the seller, and assisting with the onboarding of the new entity’s accounts which was complicated by the use of the same legal entity and Tax ID with a modification of the legal status to an LLC.