I have an acquisition I’m looking at where the terms are basically a lease to own, but the firm comes with no working capital or accounts receivable. Typically, I’d prefer to purchase working capital with a business, but it’s not an option here.
I would eventually be merging this with another firm (already owned). However, it would put some stress on that business through the annual down season if working capital is not bolstered.
The target does ~$1M+ on the bottom line and the lease is very reasonable so cash flow is not an issue. I’d be looking for ~$500k – $750k. Also, this is a quick close, so SBA is not a desirable path.
How would you guys go about sourcing funds here?