Results 1 to 9 of 9
-
03-20-2019, 02:55 PM #1
- Join Date
- Jul 2018
- Location
- Ft lauderdale, FL
- Posts
- 37
Logistics co need 1.5 mill to buy themselves out of chap 11
We need a private equity firm for a logistics company
looking to buy himself out of Chap 11
Needs 1.5 mill
does 2 mill a month
Has about 800k in assets but is willing to give up equity in his new co (it has not been created yet)
If anyone out there can help. shoot me a message
Thanks
-
03-20-2019, 03:01 PM #2
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,485
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
03-20-2019, 03:32 PM #3
- Join Date
- Jul 2018
- Location
- Ft lauderdale, FL
- Posts
- 37
we are not
-
03-20-2019, 03:43 PM #4
- Join Date
- Oct 2016
- Posts
- 4,318
Uh oh.
1) if you aren’t registered to broker equities transactions, you’ll be breaking the law
2) his gross revenues don’t matter. What matters is net revenues (which he’s in the red)
3) why is he starting a new company? By stating this, debt clearly won’t be an option.
4) can’t see anyone being interested in an equity position in a logistics company
-
03-20-2019, 03:55 PM #5
- Join Date
- Jul 2018
- Location
- Ft lauderdale, FL
- Posts
- 37
yea, I was hoping that I may be able to find a way to make this happen even though I am not licensed, possibly by working with someone who is (in a legal way obviously) But not sure how that'll work. And I get what you're saying, a hedge fund was interested but for the assets he has, they just can't give him 1.5 mill
-
03-22-2019, 08:32 AM #6
- Join Date
- Feb 2017
- Posts
- 3,429
Here's the legal way to do it. A colleague of mine has been doing this for 30 years with huge multi-million dollar deals and never had a equity brokers license.
1) Make a deal in writing with the equity company that they won't close without YOU saying "fund."
2) Work the deal as it needed, get it close to closing
3) Wait for the equity money to be put into an escrow account ready for the funding
4) At this point you can make a fee agreement. Do not make it a percentage, that would be illegal. If it's a $1.5mm deal, and you want 3 points, just just a flat consulting fee of $45,000 that will be agreed that can be taken out of closing.
5) Once you both sign, send the equity partner the fee agreement along with the okay to close
6) Equity partner will fund both parties directly
My colleague does it with a Swiss entity, but I don't think that that should be a deal-breaker.
I've never done it, but I don't see why it wouldn't work.
-
03-22-2019, 09:57 AM #7
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,485
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
03-22-2019, 10:09 AM #8
- Join Date
- Feb 2017
- Posts
- 3,429
How is charging a consulting fee illegal? As long as it's not a percentage of the amount procured and it's a flat fee.
-
03-22-2019, 10:22 AM #9
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,485
Does not matter how you classify the fee. It is still a form of compensation and not legal. You can sell assets in some states without a FINRA license. Some require a real estate license to do so. You cannot accept any form of compensation for an equity transaction without a FINRA license. Not only will FINRA come after you for doing so, most states will have their AG after you and in some states you get a nice visit to their pokey.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
Similar Threads
-
3 mill a month
By eddie in forum Merchant Cash AdvanceReplies: 5Last Post: 02-26-2019, 09:54 AM -
Logistics company looking to buy themselves out of Chap 11
By Nikki96 in forum All Other LendingReplies: 0Last Post: 02-20-2019, 05:44 PM -
Mill looking for 500k LOC
By HFS in forum Deal BinReplies: 8Last Post: 08-17-2017, 05:28 PM -
Can cap rumor mill and knights
By CHAMP3 in forum Merchant Cash AdvanceReplies: 6Last Post: 12-02-2016, 02:25 PM -
1 mill a month
By MonthlyFunder in forum Deal BinReplies: 5Last Post: 11-29-2016, 03:34 PM