Lenders for $8m EBITDA Company

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October 01, 2023

by a searcher from Harvard University - Harvard Business School in New York, NY, USA

Hi - Our current platform is ~$2.5m of EBITDA. We're are looking at a few acquisitions that would bring us to $8m of EBITDA and may require refinancing our facility. Any recommendations for lenders that play in this size range. We're seeking a facility with 5.0x leverage (~$40m of debt drawn at close). For background, out platform is a service-based business with strong recurring revenue and retention rate.

Our current lender provides us a facility at 4.0x leverage with no warrants / co-invest required.

Best,
Xander

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commentor profile
Reply by an intermediary
from Texas A&M University in Houston, TX, USA
5.0x is highly leveraged. You’ll likely need to find an ABL lender if you have the borrowing base assets to support or a bank solution involving mezz. At this juncture of the economy most banks are highly concerned about risk and lending has gotten tight. $40mm to a $8mm ebitda company is not an easy ask for senior bank debt right now. Wish you all the best!
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Reply by a professional
from New York University in New York, NY, USA
At that size, there are a number of lenders who will have interest, depending on the industry and the overall economics. Happy to discuss more over email: redacted
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