STRUCTURING DEAL AND INITIATING LOI

Hi all, I have a target doing with PnL of $4M rev and $450K SDE in 2019, BS has ~$400K book value. However, in YTD 2020, sales are down 22% due to covid. The good news is variable operating expense reduction far outpaced the sales decline, generating higher cash flow. Current Book value is approx. $800K. Few questions:

1. How would an SBA lender look at this business from a lending perspective, and will they consider the cash/equity this business has on the books, even thought it's been impacted by covid?

2. How should I structure the deal? Seller is willing to stay on for 12 months transition.

3. Are there contacts that will help with LOI?



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