Current LBO loan market (non-recourse, not SBA loan)

by a searcher from INSEAD

2 years ago

Hi everyone,
Does anyone have experience with getting a LBO loan (non-recourse, not SBA loan) for their small buyout recently, especially after the rise in the interest rate?
I am currently pursuing a $3M acquisition of a business service company (i.e. no hard asset) with appx. $1.2M SDE. I am hoping to get a 1x leverage on the transaction.  I want to understand the criteria for getting an LBO loan approved and the typical terms.
Thanks,
Shun

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1 comment

searcher from University of Notre Dame

$1-2M in EBITDA is sort of a dead zone for conventional financing.

Unfortunately, there aren't many conventional options for what you're describing. If you're set on non-SBA and non-PG, you'll likely have to source this from a private lender (like a high net worth individual or a family office).

9 months ago | like reply | 1 like

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