Debt and Equity for Acquisition of $4.4mm EBITDA Manufacturing Business

searcher profile

September 28, 2022

by a searcher in New York, NY, USA

Hi all,

Some partners and I are under LOI to acquire a 50+ year old $4.4 million EBITDA manufacturer of stamped and welded components for the automotive space (components for seating, doors, windows, consoles, etc).

We would be buying the company for a ~3.3x valuation. We're contemplating $10 million of debt (or 2.26x leverage) at close (but are open to getting bids for lower or higher amounts). The amount of equity we'd need to raise from external parties would be $2 - 5 million.

We're looking to find lenders and accredited equity investors to finance this transaction - let me know if you have recommendations or would be interested.

Feel free to email me at redacted

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Isaac - Thank you for posting. We are a commercial loan brokerage shop with 350+ funding partners. Although we do not provide equity, we do have a wide variety of debt options available, and I would be more than happy to go through these various options with you at any time. You can reach me at redacted Thank you.
commentor profile
Reply by a searcher
from Harvard University in Washington, DC, USA
At 3.3 you should be able to debt finance the entire cash at close (like 75% of EV) + a seller note. There is no need to make this too complicated. Using commercial debt is the best way to make an acquisition. Too many equity partners makes for a messy kitchen.
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