We got the funding that Phil and Abhi needed for their HVAC acquisition even when their original seller backed out at the eleventh hour. Here’s the full story…
Phil and Abhi were seeking to ramp up construction-related service businesses and their first acquisition would be a construction management company. They went through all the due diligence and the deal kept getting postponed for one reason or another.
Then, at the eleventh hour of the ordeal, the seller just backed out. They were pretty disappointed, to say the least, as they had put in countless hours in this project. So, what choice did they have but to go back to the drawing board and search for another opportunity?
We happened to have a business broker in our network who was selling a very profitable HVAC company in Southern, Illinois so we connected them for the HVAC acquisition.
Phil and Abhi wanted to work with Ivanhoe again on this second scenario for two major reasons:
- They really enjoyed working with the Ivanhoe Capital Advisors’ team on the first project.
- More importantly, we would be able to keep going with them for the long haul and really help them build wealth with conventional financing once their SBA exposure limit had been maxed out at $5 Million.
See most lenders can only offer that $5M and that’s it. Buyers don’t really have an option in that lower mid-market once that is exhausted. Not at Ivanhoe! We have the unique ability to go over that threshold and offer conventional financing once that limit has been hit.
We financed their HVAC acquisition with a $3.424 Million 7A loan with their assurance that this would be just the beginning for them with our company.
We can partner with them for many more construction-related acquisitions once their SBA limit is up as we can offer conventional financing for blue-sky scenarios.
This is very important when your end game is not just to buy one business, but to acquire a portfolio of businesses to maximize your profitability and grow at a quicker rate. So, if your end game is similar to Phil and Abhi’s, give us a call, because we don’t just fund HVAC acquisitions…We build legacies!