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Growth & Project Planning
Executing Growth & Project Plans
Capital Funding
The Partners
Offices
Home, Garden and Decorative Products Wholesaler
Tatleaux Management Group was presented the opportunity to acquire a leading wholesaler in its industry. With the opportunity came challenges. Much of the assets were in the form of illiquid inventory. In spite of a national customer base, sales through the Internet and telemarketing comprised only 1% of total sales. The inventory management and point of sale system was DOS-based and 10 years old so data analysis was cumbersome at best. The customer base was evolving in such a way that the Company required an investment in the development of a higher skilled and Internet-literate employee base to both improve customer relations and free up senior management to focus on higher value functions.
Results:
• Successful Fundraising: $2.0 million of working capital financing, $2.0 million in a senior term loan, $2.0 million in mezzanine financing and $1.9 million in junior seller financing
• Equity Support: Tatleaux principals and investors provided all the equity capital in the deal
• Increased Inventory Turnover Rates: 93% of inventory purchased by Tatleaux was sold within a year
• Increased Internet and Telemarketing Sales: in a year and a half, 63% of sales were by Internet and phone, up from 1% at time of acquisition
• Strengthened Cash Flow: All debt payments were made to lenders in a highly leveraged deal as Tatleaux integrated the product sourcing and sales processes in a supply through demand chain approach that made the most efficient use of cash
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