123 Ottawa Landscapers Ltd.
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123 Ottawa Landscapers Ltd.

123 Ottawa Landscapers Ltd. is one of Ottawa’s most highly regarded landscape companies. The company offers cradle to grave design, build, and maintenance services for residential customers.

Issue

123 Ottawa Landscapers Ltd. sought acquisition financing for a residential landscaping contractor offering services that encompass design, build, and maintenance solutions.

Due to the unique structure of the vendor-take-back financing, which involved a 3-year repayment period, and the need for a rapid 4-week closing, Kyle Kreppenhofer made a deliberate choice not to approach traditional banks. Instead, he engaged asset-based lenders who placed a higher priority on assessing the tangible assets of the business and were less concerned with historical cash flow, as the “VTB” arrangement was affecting proforma debt-service calculations. A favorable aspect was that the purchase price was determined based solely on the value of free and clear equipment, without accounting for goodwill.

Solution

While there were discussions and disagreements regarding the appraised value of the assets intended for acquisition, Kyle Kreppenhofer ultimately secured the client financing free from covenants. This transaction held critical importance as it marked the initial step in a series of roll-up acquisitions for our valued customer.

Services Used

  • Mergers and Acquisition Financing
  • Equipment Financing