MSP rollup, 3 done, 1 ongoing. Want to refi SBA + bolt-on acquisitions

searcher profile

January 12, 2025

by a searcher from Warwick Business School in Wappingers Falls, NY 12590, USA

I am a partner at an IT services company out of Greater NY city. We have been in business for 19 years. Oct 2023 we acquired 2 companies, 1 in Alexandria, VA, 1 in Jacksonville, FL along with a building. Current revenue is $4.5M, EBITDA $900K, 150 customers. This was thru SBA7a ($3M). Acquiring another right now to be finished by Feb middle. Combined revenue will be $5.5M, EBITDA will be $1.3M, 250 customers. Execs and Partners have 25+ experience with successful exits. Solid team of 16 all US employees and growing. Fully developed Marketing & Sales system in place run by an agency. We want to refinance the SBA loan and raise enough capital / have access to enough capital for bolt-on acquisitions across the country. Would like to remove the personal guarantees of the SBA7a. Is there any option out there? Please advise.
1
7
181
Replies
7
commentor profile
Reply by an intermediary
in New York, NY, USA
Hi Ron, congratulations on the success of your MSP rollup. Our CapFlow platform has a separate vertical for non-SBA lower-middle-market financing and we recently did a couple of acquisition credit lines for sponsors enacting a rollup strategy.

Depending on the details, options can be available not requiring a PG. Drop me a line at redacted so we can set an intro call to discuss your financing options.
commentor profile
Reply by a professional
from University of the District of Columbia in Dallas, TX, USA
So many questions. Length of each contract, type of contract (government contracts hold weight, client acquisition techniques, complimentary services, market location, added value (electrostatic cleaning), employee compensation type###-###-#### or W2), etc... the higher the barrier to entry, the higher the EBITDA. In some cases, I have seen 14.5X
commentor profile
+5 more replies.
Join the discussion