When most lenders said “no way, it’s too controversial”, we said we don’t discriminate and got this ammunition manufacturing acquisition on the East Coast funded. Here’s how we did it.
Mike had built a pretty impressive food-service franchise portfolio and felt it was time to diversify into other industries. He had an extensive manufacturing background from a prior life.
Believe it or not, he came upon an ammunition manufacturing facility on the East Coast that he fell in love with it. This enterprise was putting out some great numbers and he thought this acquisition would be a no-brainer.
However, when he went out into the marketplace for financing he saw how politically correct lenders and banks had become.
Banks and lenders wouldn’t even give him the time of day once they knew what space the business was in.
At Ivanhoe Capital Advisors we don’t discriminate against certain industries, even the controversial ones. Also, we believe in the Second Amendment of this country. We felt that if the business made sense, and our client Mike had the means, why wouldn’t we do whatever we could to make his dream a reality?
Here is how we structured the ammunition manufacturing acquisition:
- $5 Million 7A (maxing out exposure limit for SBA)
- $400K Conventional Loan in Pari-Passu position
- $745K Cash Infusion from Mike
- $300K Seller Note
$6,445,000 Total Project Cost