Lenders for a large healthcare deal

May 22, 2024

by a searcher from Northwestern University - Kellogg School of Management in Chicago, IL, USA

I am under LOI on a healthcare deal with $10+M in EBITDA and am looking for senior debt in the $10-$15M range. This is a bit large for most traditional search lenders and am wondering who might take a look?

Thank you to all those who made good connections, looks like we will be receiving at least one term sheet. For those who ridiculed, there was some need to maintain anonymity given our NDA and this being a public platform, and we did receive a positive indication pre-LOI but were acting in good faith towards the seller by making more connections. ^redacted‌ ^redacted‌

Reply by an intermediary
in Campbell, CA, USA

This is somewhat off topic, but since I have seen many posts about business brokers and their irritating need to vet buyers, I'm going to chance this post. Business brokers ask for proof of funds and the ability to obtain financing because some buyers lock sellers into exclusivity clauses when they have no idea how they're going to put the deal together. Meanwhile, the broker and seller have their hands tied with respect to hedging their bets against buyers who don't know what they're doing. Is it any wonder that we ask for experience and proof of funds and/or financing before the seller signs an LOI with an exclusivity period?

Reply by a professional
from University of Toronto in Toronto, ON, Canada

^redacted‌, thanks for including me. To our "Anonymous Searcher": I'm a successful healthcare self-funded searcher and a former bank credit executive. A key issue here is the healthcare vertical; they are not the same for financing purposes, lenders' appetite for risk in different healthcare verticals differs materially. What vertical are you in? Where are you located? How much equity are you contributing? What's the deal synopsis in 100 words or less?

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