The Long Road to Funding Success

Financing Breakdown

Risks

Without financing, the acquisitions and growth would require large, steeply discounted equity raises.

Scenario

Scaling

Industry |

Technology

Key Challenges

Public parent negative EBITDA
U.S. state agency receivables
Canadian government counterparts

Loan Type

Line of Credit

Outcomes

Growth Unlocked
Additional working capital let the company bid on far more opportunities, unlocking growth potential.
Acquisition Enabled
A tailored U.S.-Canada solution enabled multiple follow-on acquisitions funded by sellers’ receivables.
Cross-Border Structure
Two separate lines met state requirements without assigning or notifying counterparties.

Lender Type

Private Credit
Bank

Result |

Capacity Expanded

Overview

The Long Road to Funding Success

Diamond Willow secured an initial $2 million line, expanded to $7 million across U.S. and Canadian divisions.

The client is a public Canadian cybersecurity company serving governments and Global 2000 clients with behavioral biometrics and critical services. After two years of learning the market with us, we referred the company to the only lender set up for Government receivables in both Canada and the U.S., but the deal stalled. The CEO then hired Diamond Willow. We reframed the risk around U.S. cash flow, put tight cash controls in place, and built parallel lines for each country that respected State and Government rules and kept both divisions funded.

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The Challenges

  • Negative EBITDA at the Canadian public parent.
  • Counterparties were State and Government agencies.
  • No ability to assign receivables or notify counterparties.

Risk Mitigants

  • U.S. division generated positive free cash flow.
  • State and Government agency counterparties reduced credit default risk.
  • Tight cash controls implemented to protect the lender.

The Long Road to Funding Success

We returned to the same lender with a clearer story and a leaner structure. The outcome provided additional working capital leading to material growth and facilitated multiple acquisitions.
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$2M

initial LOC executed.

$7M

combined capacity post expansions.

2 divisions

funded during acquisition.