With a successful track record of raising patient capital for business service companies, PCE assisted our client in recapitalizing its balance sheet and secure growth capital.
About the Client
PCE Advisory represented a premier provider of commercial landscape maintenance services with an impeccable operating history of more than 12 years. The Company is privately owned by two brothers who founded the business.
With lingering effects of the Great Recession constricting the landscaping marketplace, as well as the Company’s profitability, our client’s goal was to recapitalize the debt on its balance sheet in order to use operating cash flow to grow the Company.
One of the Company’s primary issues was the servicing of existing short-term debt. This debt service restricted the Company’s ability to expand its asset base and add the necessary headcount to grow the business. PCE recognized the need for patient capital and created a competitive process in which mezzanine / subordinated debt providers and senior lenders were engaged to bid on the recapitalization of the Company’s debt. Through a series of complex models and extensive analytical support, PCE assisted the Company in securing senior debt, which was used for working capital purposes, as well as a subordinated loan, which was provided on a zero amortization basis.
Through the insertion of patient capital, our client was able to enhance its operating base and expand its footprint.