I looking to fund a construction services deal that has A/R worth around 1x EBITDA 0r $2.8m.
I'm paying ~4.5X EBITDA for the business. Deal size is around $13m. That includes the AR/working capital.
Since AR is worth around 20% of the deal value, I was wondering if there were other ways to finance this portion of the deal that would allow for more overall leverage. Could this be done with a revolver / receivables finance rather than with the convention term loan?
Would be curious if anyone got creative with this - look forward to your comments! Thanks!
Creative financing for outsized A/R as part of acquisition

by a searcher from Columbia University - Columbia Business School
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