Columbia West Capital - Transaction Case Study
Capital Raise for Whisper Creek Log Homes

 

Transaction

  • Whisper Creek manufactures traditional look and feel log home kits which it supplies throughout the United States and Canada.
  • The company sought an equity infusion for growth and working capital needs.

Challenges

  • Locating a financial partner with operating experience capable of providing both strategic advice and capital
  • Executing and maintaining an attractive deal during one of the most historically difficult economic atmospheres among the home manufacturing industry and economy generally
  • Dealing with numerous cross boarder Tax and operating issues for both the buyer and investor

Solution

  • CWC initiated a controlled auction process to determine the most appropriate investor for shareholders’ valuation and qualitative considerations.
  • CWC orchestrated cross-border tax reorganization and initiated a change of domicile to appease investor concerns.
  • CWC created an earnout structure which provided Management it’s much needed capital while mitigating the “pipeline” risk to the investor, who was concerned about investing in a declining economy.
  • Closed the transaction at an attractive valuation in light of the economic atmosphere