INDUSTRY: Technology

OPPORTUNITY: Leveraged Buy Out / Financial Engineering

DESCRIPTION: Acquired 80% of an Inc. 500 Technology company.

BACKGROUND: Company needed working capital. Ownership structure was dysfunctional.  Two of four shareholders did not have the means to invest, but did not want to incur dilution.

VIVARIS:

  • Former partners received cash and retained 10% ownership.
  • Financed using “unitranche” structure, providing a 12% coupon and 19% ownership to our investors, plus access to $4.5million of working capital.
  • Secured additional financing from a Fortune 50 company at a much higher valuation.
  • Fortune 50 investor brought a private-label customer base and sales distribution.

PERFORMANCE: Vivaris investors still own control of the company and have an (unrealized) annualized return on their investment of 41%.