Looking to close an equity gap on a unique acquisition

searcher profile

January 07, 2025

by a searcher from Oregon State University in Monterey, CA, USA

Investors,

I'm under LOI for a business and associated real estate, with a teaser, NDA, deck, and data room ready to go.

What it's NOT:
A conventional search target like home services, B2B services, SAAS

Characteristics:
~$5M Revenue
~40% gross margin
~15% EBITDA margin (~700k)
~4.25x multiple for the business including working capital, plus two CRE parcels.
SBA senior debt plus ~30% seller note
Primarily D2C, combination manufacturing and ecommerce
"Project based", 5 figure average sale, with opportunities for commercial sales, exports/royalties, and diversifying the SKUs

High level terms:
7% preferred rate
conversion to common equity on return of capital
conservative IRR with J-curve growth: 28%
1x liquidation preference if not yet converted to common
preferred checks 50k to 250k - negotiable (50k = 2% common equity)

Expected close: late Feb


Preferred relationship:
"silent" partner, no formal board at this stage/size.
Informed quarterly to annually, and open to calls for strategic advice.

If you haven't filtered yourself out by this line, let me know and I can send you a teaser or arrange a redacted

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commentor profile
Reply by a searcher
from University of Miami in Key Biscayne, FL 33149, USA
^redacted‌ id like to hear more. Nick at endangeredinvestments.com
commentor profile
Reply by an investor
from University of Nebraska in Austin, TX, USA
How much are you raising? You don’t outline what the ‘self funded equity multiplier’ or step up is here.
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