Investors,
I'm under LOI for a business and associated real estate, with a teaser, NDA, deck, and data room ready to go.
What it's NOT:
A conventional search target like home services, B2B services, SAAS
Characteristics:
~$5M Revenue
~40% gross margin
~15% EBITDA margin (~700k)
~4.25x multiple for the business including working capital, plus two CRE parcels.
SBA senior debt plus ~30% seller note
Primarily D2C, combination manufacturing and ecommerce
"Project based", 5 figure average sale, with opportunities for commercial sales, exports/royalties, and diversifying the SKUs
High level terms:
7% preferred rate
conversion to common equity on return of capital
conservative IRR with J-curve growth: 28%
1x liquidation preference if not yet converted to common
preferred checks 50k to 250k - negotiable (50k = 2% common equity)
Expected close: late Feb
Preferred relationship:
"silent" partner, no formal board at this stage/size.
Informed quarterly to annually, and open to calls for strategic advice.
If you haven't filtered yourself out by this line, let me know and I can send you a teaser or arrange a --@----.com
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