Seeking debt lender for LBO in residential construction sector

searcher profile

February 14, 2023

by a searcher from Babson College in Brattleboro, VT 05301, USA

Hi Everyone,

I have a deal under LOI to purchase a west coast based manufacturer of engineered wooden trusses and am seeking a debt lender ($5-10M of senior debt) for the leveraged buyout. Does anyone know of any lenders who might be interested?

Thanks!
Ryan

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commentor profile
Reply by an investor
from Fort Lewis College in Denver, CO, USA
^redacted‌ thanks for tag. The only thing I have to add here is that I would go into this assuming you are going to have to sign a PG. Finding a workaround to that (especially on a smaller deal) is unlikely and/or may actually not fit your goals and those of your investors. Welcome to being a small/midsized business owner and putting everything on the line!
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Reply by a searcher
from University of Virginia in Fort Lauderdale, FL, USA
Ryan, if you plan to grow in a way that necessitates buying equipment on equipment financing, I'd try and get a carveout for any equipment financing you put on the company post-close. Most lenders will allow you to carve out equipment financing from total debt covenants (but not cashflow because the equipment finance would impair future cashflows). Hope that helps even if it's not your original question
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