Critique my deal

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by a searcher from Murdoch University
in Chicago, IL, USA

1yr ago

Critique my deal

I am under LOI with a concrete company and wanted feedback on the deal structure, particularly from a financing perspective.

Revenue $14,200,000
EBITDA $3,500,000
Multiple x 4
Valuation $14,000,000
Cash at close $9,000,000
Seller note $2,500,redactedyears, 7%, balloon payment)
Seller equity roll $2,500,000

Interested to see what ya'll think. Also, would my deal be of interest to non bank/mezzanine lenders?

Thank you.

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reply by a lender 1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

We would be happy to take a look. We provide a free assessment from a financing perspective and are happy to sign an NDA. You can reach me here or directly at redacted

reply by an intermediary 1yr ago
from The University of Chicago in Chicago, IL, USA

Even though I do not have a lot of data, I ran financials with following assumptions. Equity = redactedyours+ 2500 seller, meaning seller has 50% ownership), Debtredacted% 5 yrs, no LOC, CapX 20% of EBITDA funded from operations, etc.
You will have negative cash flow. in y1.
Multiple is good, actually low. Then why negative CF? Deals of this type require a lot more than just traditional financing.
happy to show the model. DM me.