An Iowa-based manufacturer of medical carts and related products.
Waterloo Healthcare had not invested in new product development for years and sales took a hit. Revenue declined 50% in 5 years due to the lack of new products and a manufacturing recession. The company had a large debt burden, had stretched its payables to the limit, and they also inherited several problems when they were acquired two years earlier.
Equity Partners was retained and looked for buyers for the business while also negotiating terms with creditors that would allow a transaction to be completed. Equity Partners launched an international campaign to identify all parties that could be interested in acquiring or investing in the business.
Equity Partners quickly obtained three offers to purchase and operate the company. A transaction was ultimately structured that allowed for an asset sale to the buyer, and transfer and assumption agreement with a third party for licensing the brand name.