May 2018 (Revised January 2019)
Teaching Note
HBS Case Collection

Lind Equipment

By: Richard S. Ruback, Royce Yudkoff and Ahron Rosenfeld

Format:Print
| Language:English
| Pages:13

Abstract

Teaching Note for HBS No. 212-012. Lind Equipment, a Canadian manufacturer and distributor of industrial electrical safety equipment, was purchased in December 2007 by Brian Astl (HBS 2006) and Sean Van Doorselaer. Lind’s performance was negatively impacted by the Great Recession and exchange rate changes soon after its acquisition. The acquisition was financed mostly with subordinated and seller debt (50%) and equity (44%); only 6% was provided by its senior lender, HSBC. When Lind violated HSBC’s loan covenants, the bank refused to negotiate and insisted that Lind repay its loan in full. Astl and Van Doorselaer had to decide on a refinancing plan.

Keywords

Recession; Seller Debt; Equity; Financial Condition; Borrowing and Debt; Capital; Revenue; Financing and Loans; Financial Strategy; Financial Management; Acquisition; Financial Crisis; Currency Exchange Rate; Insolvency and Bankruptcy; Manufacturing Industry; Industrial Products Industry

Citation

Ruback, Richard S., Royce Yudkoff, and Ahron Rosenfeld. "Lind Equipment." Harvard Business School Teaching Note 218-119, May 2018. (Revised January 2019.)