Hey guys figured I'd update everyone (since I know everyone was wondering... haha jk)
So I got an HVAC company under LOI!
I just started due diligence QoE with Ampleo sent over a big list of questions and documents requested to the sellers.
I am excited for this journey but also proceeding with caution looking out for any red flags.
I have 3 months to close.
I plan on setting up probably Reg D 506(C) offering to accredited investors who want to invest in the deal alongside me.
I plan on buying the business with 50% leverage with an SBA loan and then a bit of a seller note and then raise the rest in equity and put in $100-$200k of my own funds into the deal. Probably a $1M equity raise so nothing too huge.
One question I have is what are market splits if I bring in investors?
I am thinking about a 10% preferred return then splitting the deal 30% to the LP's and 70% to me, the GP above and beyond that.
I will take a 2.5% acquisition fee
7.5% EBITDA asset management fee
and a 1% disposition fee.
If anyone has done a similar deal let me know what your splits and fees were to investors. That would be helpful for me to get a baseline of info.
Happy to chat with anyone. Send me an email to discuss --@----.com or you can book a call on my calendar calendly.com/seantagge
Got my first deal under LOI! (excited and nervous)

by a searcher from University of Utah
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