Funding a partial buyout of a 3PL business

by a professional

1 year ago

I have a client that is looking to acquire 80% of a 3PL business with a $6MM EV.  It's our understanding that SBA loans requires 100% buyouts and that many conventional lenders avoid partial buyouts. Does anyone have any suggestions or recommendations of lenders who might support a partial buyout of a 3PL business?

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searcher from Harvard University - Harvard Business School

C&I bank lenders will do this. $4.8m for 80% with actual seller equity rolled into it for 20%. Have the seller partially guarantee the term loan and most banks will want the deal.

1 year ago | like reply | 0 likes

professional from Dartmouth College

Definitely trickier, but if the lender is able to have a senior lien on all of the company assets its more palatable.

1 year ago | like reply | 0 likes

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