Lender for Acquisition?

March 12, 2024

by a searcher from Rice University - Jesse H. Jones Graduate School of Business in Houston, TX, USA

Any private lenders who can do acquisition financing on $7M, but fast? $24M construction deal, $20M debt and $4M in seller financing. Current seller staying on for salary and profit share. Made $23M+ in revenue last year and $10M Net Income. Thank you!

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Reply by a searcher
in Washington, DC, USA

Finding a private lender for a $7 million acquisition financing deal quickly can be challenging, but there are several strategies and potential lenders you can explore to expedite the process. Given the construction deal’s specifics and the seller's involvement, here are some options to consider: ### Strategies for Quick Financing 1. **Contact Specialized Lenders:** - Look for lenders who specialize in construction or real estate financing, as they will have more expertise in your industry and be able to move faster. 2. **Use a Loan Broker:** - Work with a loan broker who has relationships with multiple private lenders and can quickly match you with a suitable one. 3. **Leverage Existing Relationships:** - If you have existing relationships with banks or private equity firms, leverage those connections for quicker responses and potential funding. 4. **Present a Strong Proposal:** - Prepare a comprehensive and well-organized proposal highlighting the business's financials, growth potential, and the seller's ongoing involvement to instill confidence in the lender. ### Potential Private Lenders 1. **Direct Private Lenders:** - **CIT Group:** Known for middle-market financing, including acquisition and construction financing. - **LendingClub Bank:** Offers quick turnaround loans for businesses, although primarily focused on smaller amounts, they can facilitate connections to larger financing. - **Live Oak Bank:** Specializes in construction and acquisition loans with a focus on streamlined processes. 2. **Private Equity Firms:** - **Apollo Global Management:** Engages in private debt and acquisition financing for a variety of industries. - **The Carlyle Group:** Offers private credit solutions, including quick acquisition financing. 3. **Mezzanine Financing Providers:** - **Golub Capital:** Provides mezzanine financing solutions, which can be quicker and more flexible than traditional debt. - **Hercules Capital:** Specializes in growth capital and mezzanine financing, which can be tailored to fit the acquisition needs. 4. **Alternative Financing Platforms:** - **Fundbox:** Offers fast business loans, although typically for smaller amounts, it can be a starting point for connections to larger lenders. - **Kabbage (American Express):** Provides quick access to lines of credit, which might complement other financing sources. ### Tips for a Fast Approval Process - **Prepare Thorough Documentation:** Ensure all financial documents, business plans, and projections are ready for review to avoid delays. - **Clear Communication:** Clearly articulate your needs and timelines to potential lenders to emphasize the urgency of the deal. - **Flexibility:** Be open to negotiating terms that may expedite the process, such as slightly higher interest rates or different collateral requirements. ### Considerations - **Cost vs. Speed:** Balance the need for speed with the cost of financing, as quicker financing might come with higher interest rates or fees. - **Legal and Financial Advisory:** Engage legal and financial advisors early to assist with due diligence and negotiation, which can streamline the process. By targeting lenders who have experience in construction and acquisition financing and leveraging existing relationships, you can increase the likelihood of securing the necessary funds quickly.

Reply by an intermediary
in New York, NY, USA

Depends on how fast and the capital stack. Is the $7m required going to be subordinated or Senior? We have lenders on our platform that can fund in days, but it depends on the details. Email me at redacted to connect.

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