Hey all -

Does anyone have any experience with super-high inventory deals? I'm looking at an equipment repair company on track to do $1mm in EBITDA this year but $3.5mm in inventory. Inventory growth has grown in line with revenues over the last five years and is eating much/most of the biz cash.

I like the biz - I'm thinking about doing a purchase option where I pay a multiple of cash + buy the inventory as I use it for a higher purchase price than if I did an all-cash deal. I want to do that without creating a new legal structure that will blow everyone's brains up.

Does anyone have any experience with that and talking a seller through that? I appreciate any advice you can provide.