Context

A sponsor-backed industrial distribution platform at approximately $200M in revenue had completed three add-on acquisitions in the eighteen months prior. The consolidation work had not kept up with the deal cadence. Three different ERP systems were running in parallel. Chart-of-accounts mapping was inconsistent across legal entities. Inventory reconciliations between locations carried unexplained variances. Branch-level margin reporting was unreliable.

The existing senior lender was unwilling to expand the facility without cleaner financials and a credible integrated forecast. The sponsor had a four-month window before the next platform acquisition needed to close. The company needed either a meaningful expansion of the existing facility or a new senior facility — and the reporting infrastructure to support either path.

Role

Senior advisory lead working alongside the platform CFO and the sponsor’s deal team. Direct coordination with the existing senior lender, two prospective lenders, the audit firm, and the platform’s accounting and FP&A leadership.

Work Performed

  • Consolidated historical financials. Reconciled three sets of historical financials into a single consolidated view across legal entities, harmonizing chart of accounts and adjusting for intercompany eliminations and add-back consistency.
  • Integrated three-statement forecast. Built a forecast model covering the existing platform plus the planned next add-on, with sensitivities on key revenue concentration and margin assumptions.
  • KPI package. Stood up branch-level reporting on revenue concentration, gross margin by branch, working capital intensity, cash conversion, and inventory turns.
  • Lender package. Constructed the materials for the senior lender process: covenant analysis with sensitivity scenarios, EBITDA add-back schedule with documentation, integration synergy walk supporting the forecast, and management commentary.
  • Lender process management. Coordinated outreach across two prospective senior lenders and the existing lender, prepared management for lender meetings, and managed the Q&A and diligence response process.
  • Covenant negotiation. Supported negotiation of the covenant package — leverage definitions, EBITDA add-back permissions, equity cure rights, and reporting requirements.
  • Audit coordination. Coordinated with the audit firm to produce reviewed-quality interim financials supporting the lender process.

Outcome

  • $50M new senior facility closed within the targeted four-month window.
  • Improved covenant package versus the existing facility: looser leverage covenants, broader EBITDA add-back permissions, and meaningful equity cure rights.
  • Reporting infrastructure for ongoing platform consolidation left in place — KPI package, branch reporting, and consolidation process became part of the standing finance operating rhythm.
  • Next platform add-on closed on schedule funded against the new facility.