Why DiversiCorp financial services?
DiversiCorp has been built on a philosophy of professionalism, character, and a history of working in the asset based lending and private equity industry. Consulting clients receive personal attention and decisive action from a senior member of the company. We work closely with our clients’ leadership to craft solutions based upon practical realities of a much changed market for small business financing.
Every case is different but when it comes to troubled or transitional companies each situation has a unique story and requires compelling communications with potential debt, equity or hybrid financing providers to successfully close.
Characteristics of our client
We are normally involved with transitional small businesses with revenues ranging from $5 to $50 million. Clients include:
* Family-owned businesses
* Investors in middle market businesses
* Lenders to small companies
* Privately owned businesses
Normally financing alternatives are provided to existing coaching or consulting clients as an accommodation.
What types of financing?
DiversiCorp has had a long history in the financing of current assets like accounts receivable, inventory and movable assets. This has emanated from its work for lenders that required collateral management and risk control on assets backing the loans. Working with lenders has given us a unique perspective other coaches or consultants do not share.
The need for alternative financing often evolves from an existing assignment that may precipitate a lower cost placement fee. Alternative financing may include:
* Asset-based financing on “trading” assets like accounts receivable and inventory
* Debtor-in-possession financing (Chapter 11 reorganizations)
* Distressed debt “takeouts” and turnaround capital including buyouts that may involve current and term lending
* Divestitures and spin-offs of receivables, inventory, equipment, machinery, or certain real estate
* Private investment or debt-equity hybrids – opportunistic distressed investors
* Reorganizational or exit (bankruptcy) financing
* Sale leasebacks, returns to vendors and asset exchanges
* Senior secured financing – matching outsourced loan to interested lender
* Strategic Operating Alliances to cross-match strengths of businesses to effect reduced cost or increase liquidity
* Valuation services (provided by select DiversiCorp partners)
* Vendor-driven credit programs and production outsourcing.
Compensation
Normally DiversiCorp does not accept clients solely based upon the need for alternative financing. It normally is provided for existing clients that are in the coaching or consulting divisions. The principal reason is cost. Our fees normally require lower retainers (if any) and our primary compensation is simply a small percentage of the total capital or economic value of a particular transaction. This does not include outside services where no financing is secured (e.g. appraisal or valuation). Our fees may also be quoted on a fixed fee basis. Normally we construct an agreement with the company but the lender holds a retainage and releases funds due upon closing.
