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CAPITAL RESTRUCTURE OF FORECORP WITH PRIVATE EQUITY |
- Force Corp: access machinery hirer for commercial, industrial and infrastructure projects.
- Transaction: capital restructure – funding injection by private equity to improve balance sheet structure, satisfy financiers and provide platform for future growth.
- Force Corp, founded in 1994, has enjoyed prolific growth and geographical expansion through both acquisitions and organic means. It has become Australia’s largest specialist construction, mining and industrial equipment rental business, with a fleet of more than 4,000 machines and 250 staff in 12 locations nationwide.
- The owner/managers, rather than sell 100% of the business, wished to retain an interest because of the remaining significant growth potential and their belief in the upside for the business.
- TIFL worked with the business to:
- Quickly capture the essential issues in the business model;
- Manage the due diligence and sale process, including coordination of legal and accounting auditors.
- Process required less than 4 months from engagement to settlement.
- Competitive issues limited the potential investor to one private equity fund identified by TIFL.
- The transaction significantly strengthens Force Corp’s balance sheet, enhances its financier relationships and borrowing capacity, and enables it to maintain its impressive growth trajectory.
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