Financing a deal in no man's land (> SBA and < Conventional)

by a searcher from Columbia University - Columbia Business School

1 year ago

Deal has the following characteristics:
  - 2.25M in EBITDA
  - 5 - 6x multiple
  - asset light
  - can get to 7.5 w/ SBA and jr conventional

How can I finance the rest?

1 like
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10 comments

lender from University of San Diego

Through our Capital Access Program. email me at --@----.com for more info. BTW-We do finance traditional businesses.

10 months ago | like reply | 0 likes

lender from Eastern Illinois University

We are a commercial loan brokerage shop with over 500 funding partners. I would be happy to have a discussion to learn more and see how we can help. However, the biggest challenge you are going to run into is the amount of leverage most lenders will want to put on the deal. Most conventional and non-bank lenders usually limit their leverage to 2 to 3 turns of adjusted EBITDA, so it can make it hard when you have a deal at a higher multiple. Usually you need to bring substantially more equity in, get the seller to carry back a larger portion of the debt, have the seller roll equity, bring in mezzanine debt, or do a combination of some or all of these.

1 year ago | like reply | 0 likes

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