Our Successes
Healthcare consulting group jumpstarted by funding
Our new client came to us looking for funding for an important growth opportunity. This company provides an invaluable service to both hospitals and patients by handling all the intake processes and paperwork associated with getting uninsured people coverage through government programs like Medi-Cal and SSDI. Already operating in three states, they had the chance to move into a group of hospitals in a fourth state; increasing their revenue substantially. All they needed to make it work was capital.
We were able to work through several challenges with the business—including a bank pay-off—and get them funded in time to ramp up their new operations in Minnesota.
Successful anesthesia practice uses funds to expand
A very successful Chicago-area anesthesia services company contacted us needing capital to expand their practice. They had tremendous growth opportunity, but were caught between covering the costs to add more doctors and the unpredictable payment cycle of insurance companies. Balancing the lag time between hiring a new doctors and having them start generating revenue was constraining the company. We analyzed the business and saw that it was an ideal fit to be one of our customers.
We then helped them coordinate a move to a bank familiar with the processes we needed in place to fund, worked through the intricacies involved with switching billing addresses on Medicare and third-party insurers, and were able to fund.
Fast funding keeps government contractor running
Challenge:
A government contracting client came to us in dire straits. The current bank funder was closing their line of credit because the company’s CPA-audited financial statements were extremely late. Their CPA and Accountant were in the process of getting these statements and reorganizing their back office, but had run out of time. This client was doing $750K – $1.5 mil a month in sales with future growth potential to $3-5 mil a month. They also had multiple partners and agreements in place along with UCC filings. We had to work through these challenges quickly so we could get them on board with new funding in place, satisfy their government contracts, and keep the doors open.
Solution:
The Meritus Team immediately jumped into the situation with both feet, ready to work through all the obstacles and get to a solution. Our negotiation made the buyout with the other funder seamless. All additional paperwork, documentation, and transfer of required information was coordinated both swiftly and thoroughly by being sure the right players from both sides were involved at all stages of the process. This put the company in an even better position than when they started out. They are now successfully funding their business, anticipating growth from additional government contracts coming down the pipeline, and looking forward to expanding their business revenues and profits.
Working Capital
Our new funding client came to us as a start-up company. He had tremendous growth potential, but no access to working capital needed for recruitment, sales expenses, and payroll. Meritus provided the working capital and freedom needed to exponentially grow this company from zero to $7.2 million annual run rate within the first year. With an unlimited capital line and excellent customer service, this company continues to use our finance solutions.
Outside The Box Solutions
Our new staffing client signed our agreement immediately before Hurricane Katrina struck. In dealing with the aftermath of Hurricane Katrina, they faced numerous funding and customer service challenges. This company was desperately in need of an expeditious funding solution that included a significant degree of flexibility on our part. With a resourceful and agile team of professionals, Meritus worked through the challenges of doing business during this time. Our team funded the company with an “outside the box” solution enabling the payroll/financial and customer service obligations to be fulfilled despite Hurricane Katrina’s upheaval.
Growth & Security
After suffering several financial setbacks including a sharp downturn in revenue, seasonal cycles, and poor credit decisions, our new client returned to normal operations after acquiring our financial services. Meritus facilitated the growth of this company back to over $5 million per year. As a result of the exceptional customer service and financial resources we provided, this company experiences consistent growth and security regardless of seasonal staffing requirements.
Asset Acquisition
Our client, one of the largest staffing companies in the US, was interested in acquiring the assets of a major regional competitor who was in bankruptcy. Our client had no previous experience in buying a company out of bankruptcy. Meritus was engaged to assist with the acquisition. We developed a 2 prong strategy: (i) maintain close personal working relationships with the work-out professionals and (ii) perform the due diligence before the company was even up for auction, as a result of which we were better prepared than the competition when the company was being auctioned. Our client succeeded in winning the auction and acquired the company through a Section 363 sale.
Recapitalization
Our client, the majority owner of a major West Coast-based staffing firm, engaged Meritus to advise in recapitalizing the firm and buying out minority shareholders. After reviewing proposals from private equity partners, mezzanine lenders and other sources, we recommended a plan and funding source to our client. As a result, our client succeeded in his goal to be the 100% owner of the firm.
Targeted Acquisitions
Our client won a new ‘on-site’ service program in a major US metro area but had no existing offices. After reviewing the options of organic growth versus acquisitions, we recommended our client acquire a mid-sized company to effectively service the client. Using a targeted direct marketing program to find “not for sale” companies, we created interest, fine tuned a list of potential candidates, and our client ended up purchasing a $10Million company in just over 2 months.
Financing Success Stories
These companies, as do many others, look to Meritus Capital to serve as a creative financial resource as well as a successful funding partner. We understand the needs of early-stage, high growth businesses. This greatly facilitates the forging of successful long-term financial partnerships.
$1MM Arizona Rural Hospital - Deal Done
A rural Arizona hospital had challenging cash flow issues and a recent change in CF0. In spite of this, Meritus still got the deal done - $1,000,000.00 - to improve operations and cash flow.
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