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Strategic Acquisition & Growth Financing for a Queuing Products Company

Client Overview

A UK-based queuing products company with $13 million in revenue and $1.6 million in EBITDA sought to expand its market presence by acquiring its U.S. distributor, which had $25 million in revenue and $2.5 million in EBITDA. The acquisition was strategically important to consolidate operations and strengthen competitive positioning in the global market. 

Challenge

The founder aimed to finance 100% of the $20 million acquisition without injecting new cash equity, instead leveraging the existing $6 million equity value of the business. The transaction required a sophisticated debt structure and a compelling financial presentation to secure full acquisition financing. 

Solution

Attract Capital was engaged to structure and raise the acquisition financing. The engagement was executed in three phases: 

Phase 1

Acquisition Financing

  • Financing Raised: $23 million facility to refinance existing loans and fund the acquisition.
  • Structure: Combination of senior and mezzanine debt with long-term repayment terms.
  • Value Creation: Through detailed financial modeling and presentation of cost savings and operational efficiencies, adjusted EBITDA was increased from $4.1 million to $5.7 million.
  • Process: Outreach to fifty lenders, full management of diligence, negotiations, and lender selection.
  • Outcome: 100% debt-financed acquisition with no dilution of founder’s equity.

Phase 2

Strategic Advisory

  • Attract Capital served as a Board Director, advising on:
    • Financial reporting
    • Add-on acquisitions
    • Strategic growth roadmap
  • Results Over 2.5 Years:
    • Revenue grew from $38 million to $51 million (12.5% CAGR)
    • EBITDA grew from $5.7 million to $8.2 million (15.7% CAGR)
    • Significant increase in underlying equity value

Phase 3

Exit Strategy

  • Mandated to sell the business
  • Ran a full private equity outreach and negotiation process
  • Exit Value: $50 million equity sale
  • ROI: 8.3x increase in equity value, 233% annualized return over 2.5 years

Total Capital Raised

  • $103 million over 2.5 years:
    • $23 million in acquisition financing
    • $80 million enterprise exit value

Impact

  • This engagement demonstrates Attract Capital’s ability to:
    • Structure complex acquisition financing
    • Drive operational and financial growth
    • Deliver high-return outcomes through strategic advisory and exit planning

Transforming a UK Queuing Products Company Through Strategic Acquisition

The Starting Position

  • UK-based queuing products company
  • Revenue: $13 million
  • EBITDA: $1.6 million
  • Existing equity value: $6 million

The company identified a strategically important acquisition:

  • US distributor
  • Revenue: $25 million
  • EBITDA: $2.5 million
  • Purchase price: $20 million

The founder’s objective was clear:

  • Finance 100% of the purchase price
  • Invest no additional cash equity
  • Rely entirely on rollover equity value

Structuring 100% Debt-Financed Acquisition Capital

Attract Capital structured and raised a $23 million acquisition facility to:

  • Refinance existing loans
  • Fund the full acquisition purchase price

Capital Structure Designed

  • Senior debt
  • Mezzanine debt
  • Low-cost blended financing
  • Long-term principal repayment profile

Unlocking the Required Capital

We advised on the financial presentation of:

  • Cost savings
  • Operational efficiencies
  • Integration synergies

Our methodology increased adjusted EBITDA from $4.1 million to $5.7 million, enabling the full debt financing required.

Process Execution

  • Contacted 50 lenders
  • Managed full outreach and negotiation
  • Selected optimal lending partners
  • Led diligence and transaction execution
  • Established lender comfort around rollover equity credibility

The result: 100% of the acquisition was financed with debt capital — no founder dilution.

Post-Acquisition Value Creation

Following the transaction:

  • Revenue grew from $38 million to $51 million
  • EBITDA grew from $5.7 million to $8.2 million

Growth rates over 2.5 years:

  • Revenue: 12.5% annually
  • EBITDA: 15.7% annually

This materially increased the company’s underlying equity value.

Strategic Advisory and Board Role

Beyond financing, Attract Capital:

  • Served as Director on the Board
  • Advised on financial reporting
  • Guided add-on acquisitions
  • Helped shape long-term strategic roadmap

Exit Execution

After 2.5 years of ownership:

  • Mandated to sell the business
  • Ran full private equity outreach process
  • Negotiated valuation
  • Selected optimal buyers

Exit Outcome

  • Sold at $50 million equity value
  • 8.3x increase over starting equity value
  • ROI of 233% per annum

Total Capital Impact (2.5 Years)

  • $23 million acquisition financing raised
  • $80 million enterprise exit value
  • $103 million in total capital outcomes
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