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
in Falmouth, MA, USA
from The University of Texas at Austin in Austin, TX, USA