REQUESTING FEEDBACK FOR FINANCING A DEAL IN CANADA

Purchase price: 13.5M (including 2.5M in inventory)

Last 3 Years Average EBITDA: 2.2M (Multiple of 6.1)

Seller financing of 3.5M (26% of EV) can be done in 2 ways:

Option 1: As rollover equity (Owner will keep 26% that can be bought out over 5 years)

Option 2: As “collateralized” VTB over 5 years


Questions:

1) How feasible would it be to raise 55-60% of EV[redacted]0M) in bank debt without any personal guarantees?

2) Which seller financing option (1 or 2) would be more favorable for raising the required capital?

Deal is in the Pre-LoI negotiation stage. Any relevant notes/experience would be helpful.



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