The Submission
  • $370,000 in capital for recycling center to buy out parent company’s interests 
  • 613 CBR Score
  • Backed by lien on recycling plant sorting line valued at $1,000,000
  • Sorting line estimated liquidation/ removal costs of $400,000
  • $27,500 Commission

  The Structured Solution

Maxim quickly leveraged this recycling center’s sorting equipment for capital.  By structuring a sale-leaseback, Maxim funded the final piece of a parent company buyout and helped set up the recycling center for success by spreading the buyout costs over 36 manageable payments.

The Story

When the parent company of a coastal recycling center fell on hard times, the center’s Managing Partner knew it was the perfect time to offer a buyout.  The two companies agreed on a payment schedule that was going well until the recycling plant was hit by a tropical storm.  The storm cleanup cost the plant over $300,000 and left them scrambling for capital to complete the buyout.  Maxim placed a lien on the plant’s sorting line to fund immediate cash.  The 36 month term gave the recycling center time to ramp business back up after the storm and work through management changes after the buyout without suffering cash flow worries.

  The Summary

Asset-backed partner and parent company buyouts are just two of the various transactions Maxim can structure.  Just like this recycling center, a customer often has a small window of opportunity to buyout partners or parent companies.  At Maxim, we understand that acquiring quick capital is the top priority.