Leveraged Buyout Led By Incoming Management
Industry: Manufacturer—Specialty Casework
Company Profile:CiF manufactures specialty wood casework for the laboratory and educational markets across Canada and the United States.
Its clients range from K-12 schools, universities and colleges, research, industry, government and hospitals. CiF’s services include layout, design, planning, and comprehensive project management.
As part of its product offering, CiF also sources and distributes fume hoods, counter tops, service fixtures, and electrical components.
NewPoint’s Role: NewPoint was engaged by an experienced outside CEO who had begun preliminary negotiations to purchase the company.
Our role included: finalizing negotiations on the Letter of Intent; determining the capital structure; raising all third party capital required
(senior debt, mezzanine debt, and equity); and negotiating all business issues relating to the closing documentation.
Transaction Snapshot: CiF’s business was largely project based and therefore the revenues were very unpredictable.
In response, NewPoint developed a capital structure that fit with the resulting volatility in cash flow, as well as provided the funding for a near term
requirement to move the business to a larger facility. In addition, our client had very little capital to invest in the transaction.
As such, a key value add of NewPoint was to maximize the equity received by our client immediately at close and through an earn-in mechanism based on future performance.
