Debt Financing for Small Software Acquisition

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November 28, 2023

by a searcher in Washington, DC, USA

I am looking at a software deal around $10M purchase price with $1.5M EBITDA and would like to add only 2-3 turns max ($3M-$4.5M). Can someone provide a quick guide on the types of debt that would be available for lower leverage transactions? I have chatted with some credit funds, but they seem to charge a massive amount of interest and tend to do deals where there is way higher leverage.

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I would love to take a look. We are a Commercial Loan Brokerage Shop with over 500 funding partners and we have plenty of partners that would consider this type of opportunity. You can reach me here or directly at redacted Good luck.
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Reply by a searcher
from University of Minnesota in Stillwater, MN 55082, USA
When you say you only want to add $3-$4.5M in debt, are you simultaneously saying you're investing $5.5-7M in equity (to achieve the $10M purchase price)?
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