Large Acquisition - ~ $85m Purchase price - ~ $15m ebitda

searcher profile

August 22, 2022

by a searcher in London, UK

Hello All,

I'm looking at a deal in excess of $85m with around $65m to the seller upfront.

EBITDA is around $15m

We don't have the cash on hand to secure a traditional acquisition financing so we are looking at Royalty financing, Mezzanine financing, and other unsecured debt products to fill the cash injection gap for a loan.

We are in talks with lenders who are willing to have a cashflow loan paired with an unsecured loan.

Does anyone have any advice related to structuring the deal while low on equity.

Any recommendations would be appreciated!

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commentor profile
Reply by an investor
from University of California, Berkeley in San Francisco Bay Area, CA, USA
Try discussing the deal with a mezzanine fund. They will sometimes let you keep a large equity stake if you use their expensive mezz debt. There may be other structures as you outlined in your email, but my experience is that the complexity increases and the probability of closing decreases exponentially the more parties are involved. Probably best you find a single financing partner who will write the check and negotiate a deal with them.
commentor profile
Reply by a lender
from Brown University in Greenwich, CT, USA
Hi, I'd be happy to take a look at this opportunity. We have funded several acquisitions with this exact need for funding. Feel free to reach out: redacted
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