Selected Transaction
$6.4 Million Owner-User Industrial Acquisition
Ontario, California
How The Foster Company helped an established manufacturing business coordinate the property, business cash flow, buyer equity, and closing timeline within one financing structure.
- Financing Facilitated
- $6,400,000
- Transaction Type
- Business + Real Estate
- Property Type
- Industrial
- Market
- Ontario, California
- Client Profile
- Owner-User Operator
- Closed Date
- March 2024
Transaction Overview
The Opportunity at a Glance
The Foster Company helped an established manufacturing business acquire a 62,000-square-foot industrial facility to consolidate operations and support long-term growth.
The transaction required coordination across business cash flow, existing debt, buyer equity, working capital, and closing timeline within one financing structure.
This complete view helped shape a practical path to acquisition and positioned the business for its next phase of expansion.
The Objective
What the Client Needed to Accomplish
The client sought to acquire a modern industrial facility to consolidate operations, improve efficiency, and support long-term growth.
The immediate need was financing for the acquisition, but the broader objective was to preserve working capital and position the business for future expansion.
The Complexity
What Had to Work Together
- Business cash flow and debt service capacity
- Existing debt payoff and timing
- Buyer equity and liquidity requirements
- Working capital needs after closing
- Appraisal, environmental, and third-party reports
- Contract and closing deadline
Each element affected the others. The structure had to be considered as one transaction.
The Foster Company Approach
How We Evaluated the Whole Transaction
- 01
The Objective
Understand the client’s immediate need and long-term strategic goals.
- 02
The Property
Evaluate the facility, location, market, and role in the business plan.
- 03
The Cash Flow
Analyze historical and projected cash flow to support the obligation.
- 04
The Sponsor & Capital
Review ownership, equity contribution, liquidity, and operating strength.
- 05
The Timing & Execution
Coordinate contract deadlines, due diligence, reports, and closing requirements.
The Structure
How the Transaction Was Organized
- Financing Purpose
- Owner-User Industrial Acquisition
- Primary Financing Structure
- Conventional Bank Term Loan
- Financing Facilitated
- $6.4 Million
- Buyer Equity Contribution
- $2.1 Million
- Working Capital Component
- $750,000
- Property Component
- 62,000 SF Industrial Facility
- Timing Consideration
- 45-Day Closing Period
- Additional Consideration
- Machinery & Equipment Included
Our Role
How The Foster Company Helped Move It Forward
Clarified the Complete Opportunity
Organized the business, property, capital, and timing information.
Identified Structural Considerations
Addressed cash flow, existing debt payoff, liquidity, and underwriting requirements.
Coordinated the Financing Path
Aligned the opportunity with the right financing source and structure.
Managed Moving Parts
Coordinated communication and outstanding items with all parties.
Maintained Momentum
Kept the process moving and resolved key items to close on time.
The Process
From Initial Review to Closing
- 1
Initial Review
The opportunity, objective, and initial financials were reviewed.
- 2
Structure Developed
Key financing, equity, cash flow, and timing considerations were organized.
- 3
Financing Coordination
The transaction was presented to an appropriate financing source.
- 4
Underwriting & Third Parties
Documentation, appraisal, environmental, title, and other items were addressed.
- 5
Closing
The transaction closed on time and as planned in March 2024.
Transaction Insight
What This Opportunity Illustrates
Structure Before Product
The right path becomes clearer when the complete transaction is evaluated before a financing product is selected.
Liquidity Has a Strategic Role
Available capital creates flexibility, preserves options, and supports long-term stability.
Timing Must Be Designed In
Deadlines, reports, and documentation should be coordinated early—not treated as separate issues.
Chris Foster Perspective
“Successful transactions are built by understanding the full picture—property, business performance, ownership, equity, and timing—and then aligning the financing to support the client’s goal.”
Chris Foster
Founder, The Foster Company • CA Broker DRE #01406083
Client & Partner Experience
“Chris and his team brought clarity and structure to a complex transaction. They kept everything moving and got the deal closed on time.”
— Manufacturing Business Owner
Related Financing Solutions
Business Acquisition Financing
Financing for buying a business, partner buyouts, and ownership transitions, structured around cash flow and the buyer's equity.
Explore Acquisition Financing →Related Insights
SBA 7(a) vs. 504 Loans: Understanding the Difference →Why Stronger Cash Flow Creates More Financing Options →Working Capital Solutions: How to Strengthen Cash Flow →Latest Foster Brief
8 Questions Every Business Buyer Should Ask Before an Acquisition
Avoid costly mistakes and build a stronger foundation for long-term success.
Read Latest Brief →
More Transactions
Explore more examples of financing solutions across industries and property types.
View All Transactions →
