It pays to look twice

SITUATION

A large and highly respected small ticket leasing company received an unsolicited opportunity from an investment bank to acquire a specialized, middle market equipment financing company. The client had an existing relationship with The Alta Group and asked Alta to investigate the target company with respect to business models, transaction structuring, and operational details.

SOLUTION

Alta conducted a detailed study of the company’s transactional methods and operations, including reviews of multiple transactions, portfolio statistics, customer pricing, and end-of-term methods and practices, with particular focus on the company’s transaction structures. Alta also focused on selling company’s offer of an unusual earn-out and long-term payment proposals. Based on Alta’s findings, the client determined not to move forward with the transaction that was offered.