Under LOI for an OEM-authorized equipment dealer and looking for (recommendations of) potential investors.
Deal structure requires a little creativity as the OEM has certain liquidity requirements at close:
$11.5mm Purchase Price (3.5x 2022 EBITDA, 3.2x SDE)
20% Seller Financing (seller also financing $750k working capital)
$9.0mm Preferred Equity sought
Majority of investment will be repaid after refinancing in year 1 or 2 (or later if desired)
15% Rate of Return on Pref. Equity
30% Participation in Common Equity
30%+ IRR in base case
Any ideas for potential investors? SBIC funds, family offices? Happy to share a teaser if interested.
It's a highly attractive asset with great cash flows/margins for the industry, strong macro tailwinds due to meaningful population/construction growth in its geography, margin upside as product mix shifts towards aftermarket, etc.
$9mm Pref. Equity Investors | OEM-Authorized Equipment Dealer | 30%+ IRR
by a searcher from Brigham Young University
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