Specialty Finance Company

Company Overview

The Company was a finance company providing small dollar loans of less than $5,000 to plaintiffs in workermen’s compensation claims. The loans were non-recourse and were paid only if the cases had a settlement.

Engagement Overview
• During the 2008-2009 recession, senior lending to finance companies quickly decreased.

•  The Company’s loan portfolio had an average maturity of 2 years.

•  With no physical collateral to convert to cash and pressure from the senior lender to reduce lending, the Company merged with its competitor.

•  The Company suggested that Fort Dearborn be engaged given Fort Dearborn’s industry knowledge from past engagements.

•  FDP assisted in providing crucial information and due diligence analysis on the loan portfolio for the senior lender and merging competitor.

Results
•  Fort Dearborn provided due diligence and loan analysis for both the senior lender and competitor to assist a friendly merger.

•  Fort Dearborn’s analysis assisted the senior lender in extending  the loan until the merger was complete.