Questions – Pingora Capital

We acquire companies and ensure your legacy is protected regardless of current situation

REVENUE

$2m- $250m

EBITDA

Negative – $20m

COMPANY

8-100+ years old

EMPLOYEE

8-5,000 employees

SECTORS

Any industry

SITUATIONS

Profitable – Distressed

Common Questions

Pingora Capital principals are industry and award winning leaders and in turn around and restructuring with backgrounds in business ownership, operations, legal, finance and consulting. We leverage our expertise, unparalleled resources, proven strategies and best practices from over 1,500 transactions to acquire and operate companies across industries from industrial to service where we have leadership resources available to supprt as an operator or board of advisor. Pingora Capital is privately funded firm investing debt and equity at a control interest.

I don't need turnaround?

Wonderful!

The same thing that you do to turn around a company is very similar to growing a company.

Having our expertise in doing turnarounds does give a significant advantage to prepare and protect a healthy company by identifying all the things that are a risk to the company and planning for them before they become a problem.

What about Management buyouts?

We prefer to partner with current management and build a support team and add leadership resources where needed.

Many times a founder will not want to sell directly to the management team as they do not feel they can operate the company at the same level, however with Pingora Capital, our team, resources and access to industry leaders at an operator or board advisor level, we immediately solve this known problem in management buyouts.

Why do you prefer older companies?

Older companies have survived a few economic downfalls. It is also easier to evaluate a company that has been around over 20 years versus a company that has been around less than 8.

We don’t focus on the 5 year pro-forma. If you company is over 8 years, we can project the future and see the opportunity and happy to share in the upside with equity roll over, earn outs and many other creative ways.

We don’t however, invest today on the hopes and promises of others forecasting skills. We are pretty sure no one saw COVID and the impact it had.

We are not looking to buy your company to make you rich. We want to buy your company so we can create good jobs, have future growth and make a good return on our investments over the next 20 years.

We don’t want to pay too much, which means we would immediately have to change things to get some return on the investment which can risk the company and processes that made it successful in the first place.

We want to own and operate the company for years to come

Why do you prefer older owners?

We prefer owners that have owned companies for many years and are looking at retirement options.

They traditionally care more about their employees, the company and their legacy.

They have seen the ups and downs of business and understand the future is not guaranteed.

A young owner sometimes want to value the potential of the company and not what the company is actually worth today. They also tend to look at future income they could lose which creates unrealistic expectations.

Many younger owners want the valuation to be based on the potential of the company and not their current situation.

So, to buy a company from a younger seller, we’d have to pay more than “status quo” scenario, and thereby probably end up over-paying. This places undo stress on the Company as it is then necessary to force changes as the Company needs to have its best years ever (raising prices, reducing overtime, etc). And that’s entirely contrary to our approach (which is to make NO changes to the business).

Every deal is unique…and we are flexible. We just need to talk about it.

What are Pingora's Plans

Keep doing what works and fix what doesn’t by implementing our combined 120+ years of global turn around expertise.

We really evaluate the company on what works and build strategies to not change or risk that. We keep the same people to ensure a stable employee base. Employees are key. We don’t buy companies without employees as that is an asset sale.

We want to protect and carefully grow the company. That is what we are good at.

We want to afford the owner to retire, but stay around as they are highly valuable with knowledge and suggestions on lowering risk and repeating mistakes of the past. We don’t want customers to think things are changing because they are NOT.

Each company does stand on it’s own. We are not looking to prop up failing companies as our model is to hold a company 20+ years.

How long do I need to stay around?

After closing, we appoint the new President (whom you will most likely had the opportunity to vet and personally interview) or promote an existing employee into that role . We usually have the owner transfer to a board of advisory role for several years for guidance when it comes to “tactial” activities, such as making a new acquisition, changing suppliers. employee issues, etc.

We want you to be engaged, but not responsible.

Many times we find that the owner will stay on and is reinvigorated since they are freed up from the daily hassles and stresses that kept them up at night and get to focus on things they enjoyed doing and were good at.

Every deal is unique…and we are flexible. We believe in open communication on your wants and needs.

How do you structure deals?

Each deal is truly unique.

We have done both stock and asset sales. We have stepped into pre-bankruptcy and post bankruptcy acquisitions and numerous other highly creative structures.

Our team include a full time lawyer with over 25 years in transactions, 30 year deal and strategy expert and we also have a Tax Attorney on staff for advising all parties on best approach for minimizing taxable events, like selling your company.

Regarding our capital….we are very flexible and privately funded. Pingora Capital underwrites deal using our private capital, but in situations that require significant capital, we partner with 3 select family offices that we have personal relationships with.

How involved is Pingora after closing?

Regardless if Pingora brings in a new President or promotes the “heir-apparent” to President, we are fully involved by providing expertise, guidance and resources to the company. We partner with the employees and leadership to support them in the growth. We do not get involved in running the daily operations of the business. but provide resources and support where needed to help good leaders be great and employees grow in their personal journey with the company.

We only step in to minimize mistakes and ensure the Company is headed in the right direction. The former owner provides support from a consulting or Board level to further ensure the success and protection of their legacy.