The challenge permalink
Our client was a privately owned business providing luxury goods and electronics online and through direct marketing for monthly payments. Their business model was to make money on financing through their own credit card. However, the company had issues with their existing bank relationship, an undercapitalized balance sheet, and very high cost of capital, all of which limited growth opportunities.
The Virtuoso approach permalink
We assisted with recapitalization of the company, bringing in in new capital (both debt and equity). Outside investors put in $15MM over a three-year period, but the existing owners were able to maintain majority control and the management stayed in place.
The results permalink
- Increased revenue from $24MM to 150MM
- Increased EBITDA from negative $3.5MM to positive $5.7MM
- Improved cash flow enabled the company to implement a plan for increased direct and online marketing efforts
- Stronger balance sheet and equity infusion provided for a Warehouse Line with cheaper cost of capital and increased borrowing amount
Now is the Time permalink
Virtuoso Strategic Group is a boutique consulting firm formed to deliver extraordinary value to its clients. We pride ourselves on alignment with the fortunes of our clients and an unwavering commitment to their success. We welcome you to start the conversation today.