Needs suggestions and Recommendations:

Under LOI to purchase a performing Digital Marketing Company that actually grew through Covid-19 (March April May). Unique target industry and hyper-growth potential.

Current executive leadership to stay on and help multiply the business post-transaction.
Proposed deal structure, but not etched in stone and flexible. EV of 5x Adj. EBITDA.
Our capital need at closing is $6M plus deal expenses, ~$6.5M. Our preferred structure is: • $4.5M (2.5x) of senior term debt • $2.0M (1.1x) of preferred equity, see note below • The selling shareholders have agreed to roll part of their proceeds to be a 15% owner of NewCo. The current and post-closing President will own 9% of the 15%. They want their roll to benefit from our leverage levels, so based on a $2.0M equity contribution their roll would be $300k, reducing the equity need to $1.7M.
Independent sponsors, both with significant experience in the acquisitions industry and looking to provide more than board-level support, is seeking a lower middle market debt/equity partner to assist in funding an acquisition.

Contact: Tom Shankle -