Business Capital Structures and Secures $25mm Mezzanine Financing for Automobile Dealership Group
“It was important to our client and to Business Capital, that we deliver the optimal financing solution in the shortest amount of time to allow them to take advantage of the booming auto industry. This was an intricate deal that required an out-of-the-box solution, which is one of our firm’s greatest strengths. On a business level, completing this transaction was energizing and satisfying, as it drew upon all of our attributes; on a personal level this process created a lasting friendship with the business owner” – Chuck Doyle, Managing Partner, Business Capital
Our Client is an owner and operator of a group of 17 automobile franchises in California, with manufacturer brands that include Chevrolet, Nissan, Hyundai, Volkswagen, Infiniti, Chrysler, Jeep, Ram, Dodge, Toyota, Mitsubishi, Scion and Kia. The Company ranks as the top 150 largest auto dealership in the US, with a consistent history of rising vehicle sales and profitability.
To take advantage of a strong automobile market, the Company required an infusion of growth capital to fund increased inventory, acquire new and improve existing dealerships, as well as increase their profile in the profitable used-car auction market. The combination of previous loans with high interest and purchase of new dealerships put a strain on available capital, creating a challenge in finding financing within the conventional marketplace.
Business Capital was able to understand the complexity of the general industry and the specifics of the existing floor plan and other financings in place to structure and deliver a mezzanine loan that positioned the Company to take advantage of immediate market opportunities and future plans for growth and acquisitions.