Home Healthcare / Seller Standby Agreement Required?

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January 30, 2018

by a searcher from The University of Michigan - Stephen M. Ross School of Business in West Bloomfield Township, MI, USA

Hello fellow Searchfunders,

I am looking at a purchase in the home healthcare space. 4.5X EBIDTA multiple. Debt to equity will be at least 4:1, if not leaning towards more equity.

1. If anyone has any experience in home healthcare, I would love to chat - drop a message or comment.

2. My understanding is a Seller Standby Agreement would not be required by most lenders in such a situation? Is this correct? Has anyone seen otherwise?

Thanks,

Chris

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commentor profile
Reply by a searcher
from University of Pennsylvania in Miami, FL, USA
Chris - It is lender dependent. SBA, as Lisa can explain, does require seller standby if you are using seller financing. Most traditional lenders do not require seller standby, however seller financing would be subordinate.
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Reply by an intermediary
from University of Richmond in Richmond, VA, USA
Info on SBA loan programs https://www.fundera.com/business-loans/guides/sba-loan-programs
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