Challenge

After making all those acquisitions in such a short time period, Swisher was experiencing difficulty in achieving economies of scale. In addition, Swisher was unable to consolidate the results of operations across all acquired entities in a manner acceptable to auditors, who determined the company had material reporting weaknesses. This led to a class-action lawsuit brought by shareholders.

Solution

Siena provided financing that afforded Swisher time to execute on its strategy and vision.

Result

Ultimately, Swisher decided a sale of the business was best for its shareholders.

The Swisher transaction was significant to Siena in that it was early in our history, and having a public client putting their faith in us was a true testament to the team. Swisher was experiencing difficulties in executing on their operational initiatives, and due to that had material reporting weaknesses from their audits. Despite that, we were able to plow through and reach a deal that was satisfactory to us and Swisher. Ultimately, the management team decided to pursue a sale of their U.S. operations over continuing their consolidation. We worked with the company to effectuate the sale, and we believe the sale of their U.S. operations to Ecolab was in the best interest of their stockholders, customers and employees.

David Grende
President & CEO, Siena Lending Group