One of the most interesting terms to come out of the financial markets in a recent time is that of the Unitranche Debt Definition. The term describes a unique type of business plan that was created to help businesses come up with new and creative ways to generate money so that they can have a competitive edge over their competition.
Some companies may focus on generating new customers or on making sure that they are always able to sell their products at a good price. Other companies may focus on using innovative new methods for collecting the money that they need.
The idea behind Unitranche came from the business development companies
The companies were interested in creating a different way of operating their business that would help them increase their market share and their profitability. In this case, they were looking at new strategies to get into the lucrative market of Asia and they knew that they needed to do something different if they were going to succeed. One way that they had been struggling financially was because they were carrying too many customers. They had 31.2 million customers that they were trying to service but there simply wasn’t enough of them to make it worthwhile. This would require some creative thinking on the part of the business development companies.
A creative concept was that they should start a nitrating business. Instead of trying to keep track of all the customers that they had, they would just use a software program and track each one individually. Once the numbers were in, they would know how much more the company could charge for their products and that would allow them to grow their market share. The strategy worked and a new term was born; Unitracing for private equity firms.
A great example of this concept can be seen at the company called Saratoga Industries. They have a whole division for business development companies. The entire reason that Saratoga decided to create this division was because of how competitive their business was becoming. The competition became so severe that most of the other companies couldn’t compete with them. It became almost impossible for them to maintain their market share. They needed help and that is when they decided to go into business development with a company called Unitranche.
This company specialized in snow removing and they knew exactly what they were doing
They had created a brand in the local area that people absolutely loved. People were so loyal to the snow blowing machines that they actually built a statue of a man riding the reddy machine. The business development group at Saratoga basically changed all of their advertising and their business was successful for three years straight.
If you include the revenue that the ice plant brought in, you will probably get a positive revenue number somewhere between twelve and fifteen million. When you take into account the fact that they also had the facility, carpet cleaning and janitorial services, you can see how profitable this operation was for the owners of the property. The income was even greater because they also added a hot tub to the equation. There are a lot of really good reasons why Saratoga may be considering bankruptcy.
These commercial ice machines are a huge part of the tourism economy in the area and the owners are trying to hang on to their property. But the real problem is that they have been losing business because of poor sales and revenue. Tourism isn’t nearly as lucrative as residential real estate. There are a lot of real estate investments that are more lucrative than purchasing a state of the art commercial ice machine.