Hi all,

I am looking at a deal that’s approximately 2.5mm EBITDA and we’ll likely land at 4.5-5x on the purchase

Do lenders typically cap how much they will lend as a multiple of EBITDA? I’ve heard people float 2 or 3x EBITDA but not sure if that’s lender specific. We’re ideally looking to get 65% conventional debt (+20% seller financing) so around 3x EBITDA on conventional.

Is a professional appraisal required?


How do lenders view out of state transactions if there is a GM in place/the seller stays on contract for several years?


Lastly, for conventional debt on a deal like this (3-4mm of inventory and assets) is a personal guaranty usually required?

thank you!