LIST OF LENDERS WHO MAKE INVENTORY LOANS
I'm looking at a $16M revenue / $2M EBITDA medical device distributor with $5.5M in inventory. The inventory consists of both new products and refurbished products (which the company refurbishes themselves and then resells at a high margin). The business is very stable but has no revenue growth. The inventory is required to run the business and cannot be significantly reduced.
Question 1: I'm looking for advice how to use the inventory as collateral for an acquisition loan. Does anybody have a list of lenders who will lend on the inventory assets (without a personal guarantee)? What is a good ballpark estimate for the amount of debt financing I might get on $5.5M of inventory and what are typical interest rates?
Question 2: How would you value a business like this? It it running at $2M EBITDA but has flat revenues over the past 5 years and $5.5M in inventory.
Appreciate your thoughts!