Handing off an ecommerce deal

March 07, 2021

by an investor from New York University in St. Louis Metropolitan Area, USA

I have a signed APA for a solid eCommerce company. $3.5 MM price, $1 MM EBITDA. I have a bank that will loan 50%. Seller will finance $250K.

I won't be able to close on this deal due to an unforeseen event in my life. I would like to hand off this deal to someone who can close with certainty. I am willing to assist to get the deal to close and to serve on the board since I have industry experience and will be a valuable advisor. In return, I would like preferred equity. My question is this: does 10% preferred equity sound reasonable? Too little? Too much?

Reply by a searcher
from University of California, Santa Barbara in Los Angeles, CA, USA

Please dm us or email me at redacted We have a portfolio company that excels in helping e-commerce companies grow so might have some strategic fit as well here the ability to fund a close

Reply by a searcher
from University of Minnesota in Overland Park, KS, USA

I'd be interested in hearing more and I think the preferred equity issue will be situation dependent. Would have to understand more about the deal and overall terms.

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