Hi everyone I am currently working on a transaction where the target carries a very large amount of inventory, and we are trying to determine the best way to structure and finance the deal within the financial model. Quick overview: - The company operates in the alcohol / wine industry - The business model is built around scarcity: they age wine and spirits over long periods and release inventory only once matured and market supply is constrained - Revenue is ~$150M with ~$12M EBITDA - Inventory on the balance sheet is worth ~$80M Hypothetically, let’s say the business is acquired for $70M EV and normalized NWC at closing ends up being ~$70M. In practice, it feels like you are effectively buying the business twice (for $140M), despite it generating only $12M of EBITDA from which you'll be servicing debt. How would you typically think about financing and structuring a transaction like this? Inventory-backed facilities? Longer-dated debt? Seller financing the inventory? Different valuation/structure approach? Curious to hear your thoughts and experience with these types of situations! Thanks in advance.