Looking for a Non SBA lender: $3M EBITDA transaction

searcher profile

July 28, 2022

by a searcher in Chicago, IL, USA

I am looking to connect with a Non SBA lender for an acquisition in Oregon. The business is achieving $3M in EBITDA and we are acquiring it for $7.5M. The owner is holding a 15% seller note.

We are bringing 20% equity to the transaction, however we are are looking to avoid PGs.
If this opportunity sounds of interest please comment below with your information and I will get in touch.

Thank you.

3
9
156
Replies
9
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I would be more than happy to discuss this request with you at any time. However, typically to avoid personal guarantees you are going to need a very strong collateral position and lower advance than 65%. Even then depending on the transition risk, personal guarantees may still be required, unless the sponsor is a strong fund, in which case they would take a corporate guarantee from the fund. We do a substantial amount of business acquisition financing both SBA and non-SBA and we have over 350+ funding partners we work with. Please let me know if you would like to discuss in more detail at redacted
commentor profile
Reply by an investor
from University of California, Berkeley in San Francisco Bay Area, CA, USA
There are some bank lenders who will go to 50-60% loan to value without requiring a PG assuming the company has consistently generated $2M+ EBITDA over multiple years. Alternatively, you could go with mezz lenders who would likely finance 80-90% of the deal at 12-15% interest rates plus warrants.
commentor profile
+7 more replies.
Join the discussion