ACQUIRE & EXPAND A FACILITY WITHOUT MONEY
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Do you want to acquire or buy assets, or production facilities (such as machinery, equipment, technology, an entire manufacturing plant, mine, turn-key factory, etc.)? Or perhaps you’re looking to upgrade existing industrial facilities. However, if you lack adequate capital to purchase new assets or production facilities and are unable or unwilling to obtain a loan from a bank, there’s an alternative.
How can you acquire or buy an asset, a house, a production facility, or an entire company with no money down?
The most effective method to purchase assets, production facilities, or upgrade existing industrial facilities without any initial capital is to have the suppliers finance your purchase or acquisitions through a buyback contract. This form of countertrade allows for financing the acquisition of assets, companies, and production facilities using the supplier’s or seller’s money, credit, and resources.
A buyback contract is a countertrade agreement where the seller/supplier of a turnkey production facility (including machinery, equipment, a manufacturing plant, mine, turn-key factory, etc.), assets, or companies agrees to be compensated with products manufactured from the operation of the said facility, asset, or company. Under this contract, the supplier delivers the production facility without immediate payment and agrees to purchase goods produced with that facility as payment. This method enables the acquisition of urgently needed production facilities without upfront costs and without resorting to investors, banks, or financial institutions.
For instance, you could acquire a $500 million manufacturing company from a seller, based on a buy-back contract, without any initial payment. The supplier agrees to buy back a portion of the output produced by your manufacturing plant, starting from the sixth year after the plant’s setup. This repurchase agreement finances the payment of your $500 million manufacturing plant.
Alternatively, you could acquire a $50 billion petroleum refinery without any upfront payment using a buyback contract. The acquisition of this refinery will be financed by the sale of refined petroleum, a direct result of the refinery’s operation, starting from the sixth year.
We assisted a client in acquiring a methanol plant worth $235 million without upfront payment. The supplier agreed to buy back 25% of the plant’s production over the next fifteen years as payment.
We aided a client in establishing a $750 million Aluminum plant without any capital investment. In this arrangement, the supplier constructed the plant and supplied alumina. In return, they agreed to buy back 20% of the finished aluminum produced at the plant over the next ten years as payment.
We facilitated the acquisition of a Copper Ore Processing plant worth $500 million. The supplier agreed to buy back 25% of the plant’s production over fifteen years as payment.
In one such buyback arrangement, the French engineering firm Technip agreed to supply two plants that would each produce 125,000 tons of benzene, 165,000 tons of orthoxylene, and 165,000 tons of paraxylene per year. As compensation for the equipment and licenses, the receiving company agreed to deliver annually for ten years 20,000 tons of orthoxylene and 20.000 tons of paraxylene plus variable quantities of related petrochemical products. The total value of the deal was $500 million.
We helped a client to acquire a cement-making plant worth $800 million with no money down. In exchange, the supplier of the cement-making plant agreed to buy back 10% of the plant’s production over the following 20 year period as payment.
We helped a shelving unit manufacturer receive a guaranteed supply of steel products for a 10-year period without spending cash through a buy-back arrangement. In this buyback transaction, the steel producer agreed to supply our client (the manufacturer of shelves) with steel, which is used to manufacture shelves without an upfront payment. In exchange, the steel producer agreed to buy back the shelves at a reduced price, paying the manufacturer of shelves with the raw steel. Put another way, the manufacturer of shelving units and systems paid the steel supplier with the shelves manufactured using steel.
We helped a client to acquire a $25 million Tomato paste processing plant without any capital investment by initiating, structuring, and facilitating a buy-back arrangement between our client and the seller of the tomato processing machine. The seller of a Tomato paste processing plant agreed to be paid through the export of canned tomato paste produced by the machine. The buyer of the processing machine ensured that sufficient quantities of canned tomato paste were exported to the seller as payment for the machine.
Our client recently acquired a modular oil refinery for crude oil with a 20,000 BPD production capacity at zero cost via a countertrade + buyback + tolling + switch trading arrangement.
Our client, a steel manufacturing company, got their plant capacity upgraded with an investment of $75 million to increase their production capacity without depleting their cash reserves.
Our client, an industrial products manufacturer that manufactures a range of items — from driveline products to power technologies and service parts used zero-cost purchasing sources to reduce cash expenses by 60%, preserve cash and increase profits exponentially.
A good illustration of a buy-back deal is the recent agreement between the Volkswagen Corporation and a German company. This agreement obliged VW to deliver a complete production line capable of producing 286,000 engines per year to the German company without the German company paying any money upfront. The cost of the production line and licensing agreements is to be paid through the delivery to VW of 100.000 motors per year.
An example of the buyback deal is where two British firms, ICI and Davy Powergas, sold a methanol plant to a buyer for $250 million and agreed to be paid by buying back 20% of the plant’s production over the following ten year period.
If you are interested in our assistance to acquire or buy production facilities (machinery, equipment, technology, an entire manufacturing plant, mine, turn-key factory, etc.) or upgrade existing industrial facilities using the buyback contract method, please continue reading.
With Countertrade Pte Ltd’s innovative approach, the path to acquiring assets, facilities, or companies without cash is now more accessible. Our “Initial Consultation and Strategy Planning” service is specially designed to introduce you to the dynamic world of buyback contracts, offering a tailored experience to meet your specific business needs.
Our service is more than just an option; it’s your key to leveraging buyback contracts for asset acquisition without upfront financial commitments. We establish the essential groundwork, aligning our bespoke buyback solutions with your unique business objectives and challenges.
We delve deep into your business’s acquisition needs, understanding the type of facilities, assets, or companies you aim to acquire without cash. This includes assessing your current market position and supplier relationships.
Our team collaborates with you to ensure our buyback strategies are in line with your business aspirations, setting clear, ambitious objectives from the outset.
Leveraging our extensive network, we pinpoint the most suitable buyback opportunities for your business, ensuring you get maximum value from each transaction.
Receive a personalized plan detailing ideal trading partners, transaction terms, and timelines – your blueprint for successful asset acquisition without cash.
We help you navigate and mitigate risks associated with large transactions, providing comprehensive risk assessment and management strategies.
- Initial Consultation: We begin by thoroughly understanding your acquisition needs.
- Strategy Development: Tailoring a strategy that fits seamlessly with your business operations.
- Acquisition Plan and Timeline: You’ll receive a clear, actionable plan with defined milestones.
- Ongoing Support: Our commitment extends beyond the initial plan, offering continued guidance and support.
- Exclusive Insight Offer: Sign up now for bespoke insights into assets and facilities you can acquire without cash.
- Limited Availability: We devote significant resources to each client, ensuring personalized attention and limited availability.
Our comprehensive package, priced at $100,000, is a vital investment in your business’s future acquisition capabilities. The “Initial Consultation and Strategy Planning” service is a pivotal step in effectively harnessing buyback contracts for your business goals.
The $100,000 investment in our service is converted into credits for your account, applicable towards transaction fees in your future buyback deals. This approach effectively makes our consultation and planning services cost-neutral to you.
Your initial investment returns to you as you engage in buyback transactions using the strategies we develop. The credits offset transaction fees, making our expert guidance and tailored strategies effectively free of charge.
Don’t let the opportunity to transform your business’s asset acquisition strategy slip away. Schedule your initial consultation today and take the decisive step towards acquiring assets and facilities without financial strain.
This isn’t just a consultation; it’s your pathway to acquiring assets, facilities, and companies without cash through the buyback contract method. Secure your spot now and start revolutionizing your business’s acquisition strategy.