ANYONE PURCHASE A BUSINESS WITH LARGE AMOUNTS OF INVENTORY/WORKING CAP?
Looking at a distributor with >$5 mil in inventory and not sure what financing strategy would work best.
Looking at a distributor with >$5 mil in inventory and not sure what financing strategy would work best.
Instinctively I'd say ABL, but the bankers will scrutinize the underlying assets and could erode your borrowing base for a number of reasons.
I don't mean to be a bear, but I just wrapped up a deal in my F/T job where the banker nearly screwed our client on their ABL borrowing base. Good luck!