I'm looking for funding, never done it before. After $4 million AUD est $2.5mil USD 5 to 7 year loan for 25% shares expected ROI over 800% for a roll up. I have put it out on an investment angel site and had huge interest but investors too small and dealing with a large quantity of smaller investors will take time away from me actually doing the acquiring.
There are a limited number of VC and Angel firms in Aust and from my research they seem to focus on Tech and high risk investment. Ours is low risk as its a roll up, even with a 30% revenue decline and an extra 10% fixed cost increase we are looking at over a 400% return.
I'm wondering if anyone knows where I could go for funding, happy to pay a success referral fee.
Heres just some of the latest info on the investment
Updates regarding the Swim In Money: Pool Roll Up Investment you enquired about.
LOAN: The invested money is loaned to the business and will be paid back at EXIT plus your % percentage of share value, unless the business can afford to pay back loan sooner. We are projecting year 3 to be able to pay back your capital invested, but want to under promise and over deliver. In exchange for this loan against the company you get shares in the business. This gives extra security to you as the investor as it is loaned against the assets of the business. Assets being made up of the multiple acquisitions we make.
RISKS: We have conducted further research into the effects of a down turn in the economy and as a comparable, we found the Pool & Spa industry suffered a 30% drop in revenue across Australia during the GFC with a very quick recovery. This was, at the time, touted as the worst market conditions the industry has ever faced here in Australia. I have attached some info on how this played out, factors that created that drop and how they compare to our current day on the attached PDF.
Worse Case Cash Flow:
- 30% drop in revenue over the life of the group, representing what happened in GFC
- Increased Fixed Costs 10% excluding marketing
- Assumed we took no measures to deal with the downturn.
as per original forecast
- Acquisition cost at x5 multiple of EBITDA (average x2-x3) & the returns were still over 400%
- Contingency of 3% revenue pa
- Market budget 2000%+ increase
- Additional Sales Staff & training
Please contact me if you have any further questions Thanks Amanda Bennetts --@----.com