Seeking Equity Partner For Government Contracting Business

April 17, 2023

by a searcher in Missouri City, TX, USA

Key Aspects:
- Business has been around for 13 years
- 9 million dollars in gross revenue and gross profit 2,627,437
- Strong Balance sheets featuring equipment and trucks
- The company is Licensed, Bonded, Staffed and insured to handle more work and possesses to support growth
- Business has 25 employees all willing to stay on board for new owner

We are looking to expand and will be giving an equity partner 18 percent of the company. I have a full executive summary of the business for anyone interested that goes more in-depth on market analysis, competition, how we plan to grow and the current members we have involved that will take this company to the next level. We are well positioned for growth and scale

Reply by a searcher
from University of Virginia in Fort Lauderdale, FL, USA

If the cost of equipment is the dealbreaker for growth, it may be worth looking into equipment financing. If you can service the debt comfortably, that will be much cheaper than equity. Often times senior lenders will give a carveout for total debt covenants (but not DSCR or FCCR) in case that matters. Failing that, if your business doesn't have much debt (or doesn't pledge the equipment as collateral), you could refinance the equipment to finance the purchase of new equipment. Hope that's helpful even if it wasn't your original question.

Reply by a professional
from Denison University in United States

Hi Rafi, let me know if you would like my help with the companies insurance policies. My primary focus insurance for construction related risks and I also have some exclusive insurance programs. Please feel free to reach out to me any time. Thank you, Dave Perks

+4 more replies.

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