[Stiina]

Hi there.

I have a client that is wanting to buy 90% ownership into an existing and profitable business. The business groses 2.6 mm annually with a net profit of 1.2-1.3 mm. He needs to get 1.3mm for the purchase.

Who is the best to work with for a bridge loan?

TIA

Stiina

[Kevin Henry-Seacoast]

Stiina,

It depends on how much equity the buyer is willing to invest? Does the Company have any assets that can be used as leverage (AR, Equipment, or Inventory)? Is the current owner financing any portion of the transaction? What is the industry?

Best,

[dpFund]

Hi Stiina,

Based upon the high level description you provided, this may be something we can get our arms around.

I am a direct lender, and coincidentally just funded an acquisition this week. It is admittedly more of a challenge to fund an acquisition, but if the numbers are right, we can do it.

Not sure how long of a term your client is looking for though. Our longest term is 18 months. Those would be some pretty high monthly payments, which would eat up all of the cash, even with their tremendous net margins.

Happy to talk about it though, to see if there is something we can do.

Feel free to reach out.

Best,

Dan Page
dan@fundingstrategypartners.com

[bdshaw]

I agree with Levin but would add a definition of net profit. Is that after all expenses including a salary for the owner?
Bob

[Stiina]

He is willing to invest 100-150K of his own cash into it. He is also speaking to the owner about possibly financing it. It's a bar and grille in Northern LA in an upscale are with good foot traffic