While sometimes unrelated, changes in company demands for working capital can often occur at the same time as other changes in the business such as changes in ownership structure. When this happens, it’s important to have access to flexible working capital that can accommodate transitions while supporting growth.
Rotolo Consultants, Inc., a commercial landscaping company providing design, installation and maintenance services in the Gulf Coast region, approached Gibraltar while undergoing a management buyout. The company needed financing to accommodate seasonality whilst allowing the buyout to progress as planned. Leveraging their accounts receivable, including accounts receivable from longer term projects, Gibraltar provided a $12MM line of credit to support ongoing working capital needs. Recognizing additional opportunities to support the company’s growth, GBC also went the extra mile to provide a sub-facility to fund purchases of future landscaping equipment.
As a company undergoing a buyout, the asset-based loan model fit well for Rotolo Consultants to meet its working capital and growth-oriented financing needs. Gibraltar and its credit team leveraged creativity in the borrowing base to provide the necessary liquidity to help accommodate seasonality and spur future growth.
GBC Builds Trust While Demonstrating Reliability as a Financing Partner
GBC’s credit team and management became involved in the early stages of the financing process to fully understand the complex nature of the company’s unique model. This diligence was particularly critical for a company undergoing a management buyout. The team anticipated what the company needed to achieve its growth objectives and remained involved throughout the sale process to ensure a successful financing partnership. Having direct access to decision makers is critical in these types of time-sensitive, complex transitions.
“The relationships built from day one between our management team and Gibraltar’s credit team gave us the comfort that our financing partnership would deliver what was promised,” said Brian Rotolo, Chief Financial Officer for Rotolo Consultants. “GBC’s team took the time to build trust and demonstrate their reliability as a financing partner that could understand the needs of a growth-oriented business.”
