2m loan for aquisition of 25y company by 12y established segment leader

Naturally I do not want to break any security laws, so please tell me if it does and I will take it down.

Also please do tell me if this is some form of magical thinking.

My name is Sergei Vidov, and I am the CEO of Summit Estate Recovery Centers, the best, high end, addiction treatment center in Silicon Valley / Bay Area. I’ve been in this field for ~17 years and happen to be this industry expert. My company currently is a primary sponsor of a bill in the CA senate / assembly. (SB999)

Summit is recognized by Newsweek as one of the top treatment centers in California, consistently ranking in the top 5.

Briefly:

I am looking for a loan of ~1.8m - 2m, outside of the SBA funnel, to finance this acquisition. With rates above SBA for similar size (Deal does not work for SBA - value comes from synergies in businesses, SBA does not look at that).

Money can be paid back within ~3 years. Even possibly sooner as SBA can be brought in the process in about a year from now. Just does not work for this deal specifically at this stage

I understand about the need for return to make sense financially, and in a risk adjusted context I am positive a loan to a leading addiction treatment facility in operation for over a decade to buy a company in operation for over 25 years is as uncoupled from most of the rest of the economy as you can imagine. To compare the 30% IRR equivalent that is lent to startups accounts for this risk of all these startups failing. We are not doing that here. The failing / risky part.

People get addicted in good times and in bad.

I am willing (or offering if this does not break security laws thing) to back the loan with equity, but I am not seeking investment PE partners

(there is no exit multiple here. No one is going to figure out a new App for addiction treatment in 3 years. - The business is not PE friendly.

It is very friendly to PEs that come in, make a national chain, go public, lower costs, stop hiring, let good people leave, show increase profits, cash out and laugh all the way to the bank. But we are not doing that.

Anytime I am hiring, the staff of all local facilities owned by PE can’t submit resumes fast enough. Not strictly because of pay.

This is not storage/gym/home services/hvac or something where both staff and clients are completely fungible.

Staff cares where they work A LOT. Clients care where they go even more)

My company - Summit, in business since 2012, local area quality leader doing ~5.5 m/y with 35 staff

From last year working on expansion of locations to service needs of Veterans and First Responders with Addiction / PTSD. (due to expansion cash poor till it begins working at full capacity. Expansion location launch is next monday 06/10/24)

After expansion the company in aggregate should be doing about 10 m/y with 50 staff

Meanwhile,

I have opportunity to expand by buying another local company - in business for over 25 years / serving different socio demographic clientele - does 2.3 m/y with 20 staff (but it has been operating at 40% capacity for 3+ years)

By applying synergies in business (our client acquisition pipeline can/ in-house billing / management) - I can grow this add-on from 2.3 m/y to ~###-###-#### m/y nearly instantly in capacity (with 30 staff)

There is an additional element of long term earnings potential from acquiring all the real estate that has good licensing/conditional use permits, but this will be a separate step after.

With the Veterans and First responders program launched I am working on putting the California Prop 1 compliant program that can take advantage of the 6.38 Billion bond being made available