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04-08-2022, 01:44 PM #1
- Join Date
- Jan 2022
- Posts
- 14
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?
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04-08-2022, 01:52 PM #2
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,508
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.
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
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04-08-2022, 02:01 PM #3
- Join Date
- Jan 2022
- Posts
- 14
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
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04-08-2022, 02:48 PM #4
- Join Date
- Sep 2014
- Posts
- 263
Do you have an asset list?
We can loan against assets 4 year term loan
Mike
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04-10-2022, 03:13 PM #5
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
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
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949.228.1050
@ 24 hour funding working capital loans
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