I am looking to raise term debt and a line of credit to buy and operate a sporting goods manufacturer in northern Washington State. The company has consistent growth and profitability, including through 2020 and 2021. • The target’s forecast suggests $13M in revenue for###-###-#### Adjusted profits were $809K in 2020, $1.3M in 2021, and are forecasted to be $2-2.2M in###-###-#### Adjustments were made to remove the seller’s personal expenses, to include a salary for me, and to make one-time adjustments like removing PPP forgiveness. • Revenue in both 2020 and 2021 was constrained due to supply chain issues and costs in 2021 and 2022 are higher than normal because the company ordered more inventory than reasonably necessary in order to avoid supply constraints. • Cost of the acquisition is $6M, made up of $4.5M in good will and $1.5M in inventory. Non COGS expenses range from an average of $310K-$380/mo in 2021 and 2022. The business is capital-light (only about $35K in equipment), so any lending will need to be considered on a cash-flow basis. I will write a $1M equity check and am looking to take on debt for the remainder of the purchase price, plus a $1M revolving line of credit for working capital, which will cover initial expenses and be tapped as needed to order inventory (by the 40’ container load from China and India). There is an opportunity to buy the seller’s real estate as well at $4.5M, which is a secondary priority for me. I would be happy to talk with anyone interested in a closer look at funding this project.
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