Seeking Debt for Proprietary Add-On Acquisition: $1.4M Rev / 30% Margin Legal Tech & Agency (LOI)

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by a searcher from University of Colorado at Denver
in Denver, CO, USA

5mos ago

Seeking Debt for Proprietary Add-On Acquisition: $1.4M Rev / 30% Margin Legal Tech & Agency (LOI)

I am an independent sponsor (and current agency owner) under LOI to acquire a niche Legal Technology & Marketing Agency. This is a strategic add-on to my existing platform (Juris Digital), which operates in the exact same vertical. We are looking for $800,000 in Senior Debt (Bridge or Term) to close by Feb 27. The Deal: • Target: Specialized legal marketing agency + proprietary software (SaaS component). • Financials (TTM): $1.4M Revenue | ~$430k Adj. EBITDA. • Margins: ~86% Gross Margins | ~30% EBITDA Margins. • Valuation: Purchase price is 2.3x TTM EBITDA ($1M Total Enterprise Value). • Deal Structure: $800k Cash at Close / $200k Seller Note (full subordination). Investment Thesis: • Strategic Consolidation: I own a similar agency in this vertical. We successfully acquired and integrated a competitor (Black Fin Marketing) inredactedThis is the same playbook. • Turnaround Opportunity: The target was previously doing $800k+ EBITDA but has been undermanaged recently (owner focused elsewhere). Buying at a depressed multiple (2.3x) allows us to arbitrage the value immediately by plugging their clients into our existing sales/ops engine. • Asset Quality: Includes high-authority exact-match domain and sticky recurring revenue client base. The Ask: Looking for debt providers (Private Debt, Family Office, or specialized Agency Lenders) comfortable with: 1. Speed: Need to close in ~6-7 weeks (Feb 27). 2. Size: Sub-$1M check size ($800k). 3. Asset Class: Lending against recurring revenue/contracts (Asset-light). Status: LOI signed. Due diligence materials ready. DM me or comment below for the Teaser/One-Pager.

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reply by a professional 5mos ago
from North Central College in Chicago, IL, USA

Getting a senior lender will be tough, not sure what the size of the platform you already have is but no senior lender is going to lend 2x EBITDA against no equity, you may find a mezz lender that is will to be aggressive but you will also get gouged on the interest. If your platform has scale and you have significant equity in the platform then senior lenders (private credit) will likely give you a loan.

reply by an intermediary 5mos ago
from University of California, Los Angeles in Irvine, CA, USA

Casey, We have a referral partner in Vegas who can do this as a term loan or even a line of credit on your current company as long as you have positive cash flow to cover the debt service and 2 months of bank statements. They make decisions in 3-5 days and get funded within 30 days. Reach out if interested for me to introduce you directly.