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  1. #1

    Acquisition of an established FedEx Line Haul Contractor

    I have a Client that has signed an APA agreement to acquire an established FedEx Line Haul Contractor.who has the contracts
    Purchase price is $13M and is an asset purchase deal
    Loan amount requested: $6 million USD.
    About the Assets
    Current COO, CFO, Controller and regional directors will remain on board.
    The company has been a FedEx contractor for 18 years and has had a successful track record with FedEx and all contracts automatically renewed every year.
    Gross Rev: $13.3 million
    Annual SG&A and OPEX of $10.1
    Current EBITDA of $3.2 Million
    Company has 3 contracts with FedEx and operates out of 3 different hubs in three states.

    Any lender out there that can do this?

  2. #2
    Senior Member Reputation points: 337045
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    How much equity are they putting in the deal? What assets can be used as leverage? 4X for a company with virtually 100% concentration is a stretch.
    Hedley Lamarr......That's Hedley

  3. #3
    Purchase price is $13M and is an asset purchase deal
    LOAN AMOUNT REQUESTED: ($6 MILLION ( COULD MORE)
    BUYER"s EQUITY: $750K
    THERE WILL BE A SELLER:s CARRY BACK, AMOUNT WILL BE NEGOCIATED
    ASSETS: TRUCKS AND & Contracts

  4. #4
    Senior Member Reputation points: 6585
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    Do you have an asset list?

    We can loan against assets 4 year term loan

    Mike

  5. #5
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    Ok, remember this is my opinion.

    I don't see this as an asset based loan the way you indicate. I'd suggest you remove selling price (4 x EBIDTA), asset value, contracts, trucks, buyer contribution and start over.

    3 years business tax returns.
    2021 year end P & L and balance sheet
    YTD P & L and balance sheet.
    Personal Financial Statements of buyers with suggestion on suggested owner percentage after purchase.
    Fico scores of buyers.
    3 years personal tax returns of buyers
    List of assets of trucks...form 2202
    A/R aging report on contracts.
    Projections after purchase - with and without any debt service.

    Determine what would be a reasonable selling price.
    Determine what assets (personal of buyers included) to cover 85% of the purchase price.
    Estimate a reasonable purchase price, include seller carry back and that debt service.

    You need to look at the whole package to determine how this deal could be financed not respective of seller and buyers wishes.

    I can do 10 years at 9.5% up to $10M if qualified and if deal makes sense.
    Collateralize 85% loan with UCC on personal assets, business assets.
    Last edited by Olderguy; 04-10-2022 at 03:29 PM.
    Steve Benjamin
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