Pharmacy Acquisition and Bridge Loans

Bridge Loans are a short-term financing option and are used while waiting for permanent financing, or the next stage of financing to be obtained. Bridge loans provide funding to “bridge” the gap between a company’s current needs and their long term financing requirements.

One of the characteristics of a bridge loan is that they can close quickly, which in turn allows a company to capitalize on a timely business opportunity, or acquisition. The quick access to money can also allow a business the chance to avoid penalties, bankruptcy, or other temporary problems. If longer term issues need to be dealt with, this transitionary financing provides the company time until longer term financing can be secured.

Another characteristic of bridge loans is that the process usually requires less documentation than conventional financing. Bridge loan lenders don’t usually have the same government regulations to adhere to, so they tend to have more flexibility in their lending criteria and the documentation they require. However, less documentation does not mean they won’t perform due diligence to have a comfort level with the transaction before they fund.

Permanent financing is generally used to “take out,” or pay back, the bridge loan. In the event the funds were used to buy real estate, the property may be rehabbed and sold to pay off the loan.

Uses of Bridge Loans
Acquisitions
Avoid penalties
Balloon Note Due
Bankruptcy Resolutions
Business Expansion
Foreclosure Avoidance
Investment opportunities
Mergers
Payoff Tax Liens/Judgments
Refinancing
Partner Buyouts
Renovations

Sale-Leaseback

Examples of using Bridge Loans:

1. An existing manufacturer needs $1 million to expand their business. They have 3 new equity investors who will be investing in the firm over the next 6 months, but at different intervals. However, the business has orders and needs to expand their facility and production line sooner than 6 months. The quick closing bridge loan allows the company access to the needed funds so they can complete their expansion and profit from the new orders. Money from the 3 new equity investors will pay off the bridge loan.

2. A business has an opportunity to quickly acquire a commercial property that has a great location but is in disrepair. A Hard Money Lender can provide a bridge loan until the rehab of the property is complete and conventional long term financing can be obtained.

3. A contractor needs funds to get through the permitting process of a project. Conventional financing isn’t available at this stage because there is still too much risk. A bridge loan provides the needed funds and allows the contractor to move into the construction phase and then qualify for other forms of financing.

4. During a partner buyout a bridge loan can help ensure the cash flow and uninterrupted operation of the business until traditional funding takes place.

5. Property, or equipment bought at auction may have a narrow window for closing the deal and timing of traditional financing would keep the buyer from proceeding with the opportunity.

6. To meet the underwriting expense of going public, short term financing of a bridge loan allows the company to proceed with their IPO plans.

The types of deals that require this type of loan may be considered speculative in nature, or have higher risk factors. Due to this many banks do not offer these loans. Banks must meet government regulations and need to justify their lending practices. Riskier loans do not usually fall within the lending parameters of many banks. A majority of the these loans will come from private investment firms and hard money lenders.

When there are business opportunities, quick deadlines, an old loan maturing before a new loan can be put in place, funding needs during the permit, planning, or evaluating stages, etc., these loans can be an essential financial tool.

Tips:
1. These loans are quick to obtain, but quick to expire.
2. They are similar to a hard money loan and the terms are often used interchangeably in conversations. Both are short-term, higher interest rate, non-standard loans, but in some circles hard money refers to the lending source and a bridge loan refers to the duration of the loan.
3. These loans usually come with higher interest rates than traditional financing a larger down payment, meaning a lower Loan to Value (LTV) and a lower level of risk and provides an opportunity for lower interest rates. Lower LTV’s represent a lower level of risk and may allow lower interest rates.
4. With the shorter time period, these borrowers will need to be aware that fees for valuations, legal, dues diligence, etc., will be amortized over a shorter period than traditional financing transactions.

Material Handling Equipments-Helping Hand of the Industry

Defining material handling equipment will not requires much time, but identifying and employing the suitable equipment will definitely going to take. Wide assortment of tools and machines are being employed in workshops for lifting and transferring industrial goods. Such tools and machines are referred as material handling equipment. Some are cranes, forklifts, hoists and loaders.

Importance and their demands:

The longing for material handling equipments is arousing in industrial sector. Throughout the process of manufacturing, distributing, supplying as well as disposing goods their always remains need of moving, storing and protecting goods. There are many sub-stages in the manufacturing segment itself that requires handling various sized objects. The task of storing raw materials, transporting them to the work shop followed by assembling as well as transporting finished goods to the warehouse, requires the need of respective type of material handling equipments.

Well the size of object is not the only factor of concern, their weight, temperature conditions as well as chemical properties also invites the use of handling tools. Employing them will not only improve the efficiency, but also maximize the safety standards.

Material Handling Equipments – Their Types:

The wide assortment of material handling equipments delivers diverse range of storage units, vehicles, appliances, tools and accessories. These equipments are powered through mechanical, electrical, hydraulic as well as through pneumatic forces. Classification of these equipment can be done on the basis of powering and processing tasks.

Transporting Equipments, as name implies these equipments are used for moving industrial goods and raw materials from one location to another. Major sub-categories includes:-

  • Conveyors ( long belt, snake sandwich belt and single belt)
  • Cranes (bridge, stacker, gantry and jib cranes)
  • Trucks ( platform truck, lift trucks, hand trucks and pallet jacks)

Positioning Equipments are used for handling material giving right positional direction to the goods so that they can be stored or transported later on. Such tools are favored most of the time in industries as positioning equipments works in single location for subsequent handling, machining, transporting and storing. Balances, ball transfer balances, air film devices and dock levelers are some of commonly used positioning equipments.

Unit Load Formation equipments are mainly used for restricting materials in order to maintain balance while handling and transporting single load. Palatalizes, bins, pallets, crates, tote pans are some examples of unit load formation equipments.

Identification Equipments are employed for collecting information and communicating the same for maintaining coordination among the flow of materials inside a warehouse or factory. Some are bar codes, magnetic stripe, Machine vision, radio frequency (RF) tag, Portable data terminal and Electronic data interchange (EDI).

Storage Equipments are mainly used for buffering the raw materials for a period of time. Some storage equipments include Flow-through rack, Push-back rack, Selective pallet rack, Drive-through rack and Storage carousel.

Sand and Water Table – 6 Fun Choices

A sand and water table will provide hours of play and education to your child each and every time. This fun table is an investment in your child’s future as it encourages them to use their imagination, it improves their motor and cognitive skills as well the opportunity to experience cause and effect. There are a number of tables available today and below are 6 choices that your child will enjoy.

4 Sand and Water Table Options

Step2 Naturally Playful Sand and Water Activity Center – If this table isn’t fun, then I don’t know what is. For about $200.00, you get two separate areas; one that holds about 2 gallons of water and another that holds about 20 pounds of sand to create hours of fun. Included are accessories such as boats, pots, built-in bridges and a handy umbrella. The table also includes a very important cover to keep the sand and water clean for the next time.

Little Tikes Builder’s Bay Sand & Water Table – This table comes equipped with an interactive crane! Toy trucks, containers and bridges can all work together for “loads” of fun. There are also 2 lids of which each can be played on like a table top when the sand and water are not in use or the child can play in just the sand or just the water. In addition, the umbrella that’s included expands the width of the table to provide ample shade when needed. This table has retail price for about $200.00.

Step2 Naturally Playful Sand & Water Center – Similar to the Naturally Playful table noted above, this sand and water table is similar but smaller in size and about half the price. Regardless, there are still 2 separate areas to separate water and sand and there is also a lid, an umbrella and several toy accessories. In the water area, there are ramps/tracks for boats or whatever their imagination whips up. The lid also has tracks so this table is very versatile. Priced at about $100.00.

Step2 Sand & Water Cart – This sweet sand and water table is perfect for the smaller yards or patios. The table has 2 compartments for water (.50 gallon water/25 pounds sand), a boat and tower, an umbrella that can tilt, underneath storage, 2 wheels that make it portable and a lid with tie downs to keep the contents inside secure. Although the water area seems to be a little small, your child will still be able to use their imagination and have fun.

Just Sand or Just Water Tables

Although have the ability to play with both sand and water is a lot of fun, they can also fun when played with separately. Below are 2 good choices if you would prefer not to have a sand/water combination table. Your child will still be able to use their imagination, improve their mobility skills and cognitive functions.

Step2 Naturally Playful Sand Table – This fun table includes a bucket and 2 shovels and 2 claw rakes along with a lid which has tracks built into the surface of the lid when the sand isn’t being played with. The manufacturer states the table can hold up to 80 pounds of sand although you may want to start with 50 or 60 pounds.

Step2 WaterWheel Activity Play Table – Perfect for warmer weather, this water table has a built-in water wheel, molded partial partitions to encourage imagination when moving around the boats or cup that are included. Although it only holds about 4 gallons of water, it still provides ample space for your little one to play and get wet. This table is priced at about $45.00.

Hopefully one of these 6 choices will be best suited for your child’s playtime. A sand and water table encourages exploring, discovering and experiencing sensations that only sand and water can provide.