Does anyone have recommendations for small unitranche lenders?

investor profile

February 08, 2023

by an investor from Indiana University, Bloomington/Indianapolis - Kelley School of Business in St. Louis, MO, USA

We own a $3m in EBITDA services business and are looking to acquire a $1.5m in EBITDA competitor. Total debt need would be ~$4-5m----so probably too small a deal for many of the well known unitranche lenders. Post close, total debt to EBITDA would be ~1.0x - 1.1x---so pretty conservative.

Any names would be appreciated.

Thanks.



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commentor profile
Reply by a lender
from University of Wisconsin in Madison, WI, USA
Hi John, my name is Matthias Smith, President and Founder of Pioneer Capital Advisory LLC. I help buyers of small to medium sized businesses with financing their purchase of them. I would love to connect with you to help with answering any questions. I will send you a DM with a link to my calendar if you are interested in connecting.
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Reply by an investor
from Seattle University in Seattle, WA, USA
John, You don't need a uni-tranche lender. Uni-tranche is senior debt plus mezz debt which would typically start at 3x-4x EBITDA. You should be able to find a local bank to provide sub 2x EBITDA on a deal without SBA or personal guarantees. Shoot me an email at redacted if you want to chat. Best Ron
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