I'm evaluating the acquisition of a trucking and logistics company that has ~$7-8mm of hard assets (primarily trucks and trailers).
For those who have explored more asset-heavy opportunities, have you considered a non-SBA asset-backed financing to partially fund an acquisition? I'd welcome a steer on any lenders that might be constructive in this context.
Much appreciated,
Scott
Any Asset Backed Acquisition Financing Leads (non-SBA)?
by a searcher from Harvard University - Harvard Business School
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Thanks,
Mike
One thing to keep in mind with asset based lender though for anyone else considering using one is that they typically do not fund 100% on the dollar on the collateral, specifically if it is equipment. They usually require an equipment appraisal and fund off of the "Orderly Liquidation" value in that appraisal and then usually use some sort of advance rate against that value from 75% to 90%. The "Order Liquidation" value is going to be a nice discount from market value. Also, moving stock like trucks and trailers are harder to get done by asset based lenders due to the fact a good portion of the market will not finance them because they deem them moving stock. Some equipment lenders like the equipment they are financing to all pretty much be in one-place and not moving all over the country, which makes it harder to track it down in a liquidation scenario. Just some food for thought.