Looking for investors & liquidity partners
January 20, 2025
by a searcher in Mississauga, ON, Canada
We have a lot of deals that pass our desk with great operational partners who often times need 1 of 2 things:
1) A small equity gap filled, typically 2.5% - 10% where they're willing to provide quite the preference to investors
2) Credit and liquidity partners who'll come alongside them as limited guarantors
99% of these deals are structured to not need equity in###-###-#### % notes on terms that the bank will take as equity), just a liquidity partner to help make up a 10-15% post-close liquidity view.
Typically deal sizing ranges from $1M - $10M and cashflows between $300k up to 3M.
If there's interest in either I'm happy to share some deals that are actively looking.
As an example, here's a typical deal that's looking for a liquidity partner (this one needs $1M liquidity showing):
- $7.08M purchase for 81% / $2.2M cashflows
- Operational partner will take over day to day alongside minority equity shareholder who handles sales
- Structured as:
> 50% cash on close via SBA
> 31% seller note (2 year standby, 10 year term, 0% interest)
> 19% rollover equity
> 3 months working capital left in the biz as cash and A/R
> DSCR 2.9x or just over 2x when accounting for seller finance payments
from St.Cyril and Methodius University in Falmouth, MA, USA
from The University of Texas at Austin in Austin, TX, USA