Ondeck Case Study January 2022.pdf

Case Study: Ondeck Australia MBO Financing January 2022

The Challenge

We were approached by Ondeck Australia seeking financing as part of the Management Buyout of the Australian arm of the US listed company. The company’s mission is to help Australian small businesses succeed and operates as a small business loan specialist using innovative technology and multiple data points to provide financing in hours instead of days.

Challenges included:

• The MBO was subject to the financing transaction occurring. The funding was required to repay a shareholder loan as well as provide growth funding following the MBO. It was therefore essential that the financing transaction be completed and funded prior/concurrently with the MBO.

• The MBO had a fixed date for completion, being exactly 6 weeks after the initial approach and meeting with the client. It was therefore essential that the transaction could be completed in a short timeframe.

• The new financing had to work around the existing funding facilities and security arrangements.

Our Approach

iPartners secured the mandate based on its reputation and track record for fast and reliable execution in complex situations. The iPartners Product team immediately stepped in and worked with the company to:

• Develop a strong understanding of the business and the existing funding arrangements.

• Structure a new corporate facility that could be inserted into the business without disrupting the existing facilities.

• Documented and marketed the transaction on the iPartners capital raising platform.

The Result

• The transaction was launched on the iPartners platform, 3 weeks from first contact.          

• The deal was filled with $7m of commitments taken, 2 days after launch of the deal.

• The MBO closed successfully together with the financing transaction, 5 weeks from first contact and comfortably within the 6 week drop-dead period.

The Australian newspaper covered the deal.  Read now:  https://amp-theaustralian-com-au.cdn.ampproject.org/c/s/amp.theaustralian.com.au/business/ondeck-ready-for-lending-growth-after-local-buyout/news-story/3cbe9851a464383d72b7df68198c4f5e

Disclaimer

This case study has been prepared and published by iPartners Pty. Ltd. (ABN 97 616 310 555, AFSL 502 791), the arranger of the financing described. Case studies describe our past work on real transactions by way of a general guide to our experience. Every case is different and every client is different and no guarantee or representation is given or intended about the timing or certainty of financing. Talk to us about your specific circumstances.