In addition to providing ongoing advice and guidance to assist entrepreneurs to improve operations and profitability, the principals of Ariem are called upon to assist with obtaining funding for projects. These requests come from outside professionals including accountants, insurance & investment professionals and company’s legal counsel.
In the past several months, Ariem has provided assistance to a couple of companies that needed financing for projects in progress. While each was different, the Ariem advantage enabled the financings to be completed in a very expeditious time frame with very reasonable conditions.
The first was an acquisition of a company that tied in with the acquiring company. It was a logical purchase and fit. The principal originally approached his existing bank for funding, but the bank account manager didn’t really understand the deal. This consumed nearly 6 weeks with a poor response of totally inadequate funding. The bank account manager then sent the deal to a subsidiary of the bank and again, that account manager dragged the process for another 6 weeks. The response was, again, inadequate.
The time delays caused by the bank and it’s subsidiary threatened to void the sale and cause the client to lose his deposit.
The principals at Ariem, Shamit Khosla and Michael Kavanagh were called to assist. In a short time frame, a presentation was prepared and a banking contact known to Kavanagh was presented with the deal. Within a week an offer was presented, and conditions were satisfied including an appraisal. Disbursement and completion of the sale occurred in 3 weeks, just within the purchase and sale timeline.
The second deal was financing for a start-up manufacturing facility. Ariem was contacted by the group’s outside accountants to assist the company in obtaining financing. With a start-up, there were the usual major challenges: No track record either financial or operational; risk of overruns, obtaining qualified personnel and finally, markets to sell the finished product.
The principals at Ariem met many times with the management who not only had extensive experience in the industry but also operated a related company that needed to purchase the product from the new facility.
With tight timelines, the principals at Ariem prepared a detailed information package including cash flows and presented the potential transaction to selected lenders. All came back with either a Letter of Intent or offer within a short time frame. The principals subsequently accepted a very High Percentage Loan to Program deal from a chartered bank with excellent terms and conditions which met their current and future needs.
The entrepreneurs of both companies are very pleased with the service and attention provided by Ariem.
How We Help
What these two deals illustrate is that the principals of Ariem take the time to understand the entrepreneurs, companies and the deal. With their respective experience, they can prepare a submission to lenders in the form that that the lenders are looking for, which allows for speedy adjudication.
If you are contemplating requiring commercial financing whether for expansion or acquisition, we would be pleased to discuss with you.
At Ariem we work corroboratively with the client and related stakeholders. Our experience and knowledge enable us to deal with issues in time sensitive timeframes. We operate with our motto: