Deal Under LOI - SBA Guarantor Walked Away

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October 24, 2023

by a searcher from Florida International University in Jacksonville, FL, USA

We currently have a $6.5M Top Line, $1.5M EBITDA company under LOI, and our guarantor decided to pursue a different path in terms of investment. This is a company in the aviation space.

For some background - we found this transaction off-market and have been building a relationship with the seller, getting to know them and the business over the last few months. We originally signed the LOI back in September but the deal fell through. We ended up having our operational partner go to work at the target company, which he is currently employed, gaining knowledge and experience with the nuances of this specific company. The seller ended up calling me back two weeks ago saying that they want to sell to us and that whatever we need to do, let's make it happen.

We are looking for an SBA loan guarantor to partner with us on this transaction. They can be experienced in the field or not (we cleared this prior to posting).

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Reply by a professional
from Loyola Marymount University in Menlo Park, CA, USA
Garison & Carlos, if you need some security for the Guarantor, I have a R&W Insurance policy that will name the Buer (Guarantor) as Loss Payee, so if there's a breach of the Seller Reps that costs the Buyer/Guarantor, the policy will kick in and cover those amounts. Not an expensive option. Please let me know and I'll send more information. redacted
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Reply by a searcher
from University of Pennsylvania in Miami, FL, USA
Hi Garison.

Im not totally clear on your post. Are you seeking someone to put up the PG on an SBA loan? Would that not be one of you, the operator or investors? Thank you!
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