Critique my deal

searcher profile

September 18, 2024

by a searcher in Chicago, IL, USA

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,###-###-#### years, 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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commentor profile
Reply by an intermediary
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 = ###-###-#### yours+ 2500 seller, meaning seller has 50% ownership), Debt###-###-#### % 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.
commentor profile
Reply by a lender
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
commentor profile
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