Commercial Painting Company Acquisition
Pioneer Capital Advisory LLC has helped a 26-year-old sponsor with securing business acquisition financing from a top 10 nationally ranked SBA lender to acquire a Midwest-based commercial painting company. The sponsor approached Pioneer Capital Advisory LLC towards the end of 2022 after identifying an acquisition opportunity that appeared ripe for a new leader to help with growing the specific company and taking it to the next level.
The commercial painting company that was acquired had legacy systems in place from accounting to other internal aspects. The sponsor put together a solid business plan and cash flow projection for the opportunity. He approached Pioneer Capital Advisory before having the deal under LOI. Matthias Smith, President / Founder, participated in an initial Zoom call with the sponsor/buyer and the business broker that was listing the opportunity for sale, to socialize the concept of the full standby seller note, to help the broker understand that the sponsor could afford the opportunity with his current amount of liquidity on his personal financial statement.
After getting the opportunity under LOI, Pioneer Capital Advisory LLC helped the sponsor with quickly securing a financing proposal from a top 10 nationally ranked SBA lender bank. The structure of the financing included bank financing for ~ 85% of total deal value, which included a meaningful amount of working capital (cash to the balance sheet day of closing). The deal structure also included two seller notes – one with payments starting immediately the month following closing, and the other seller note being the full standby seller note, which the sponsor utilized towards his down payment for the business acquisition. The sponsor himself, ended up contributing ~ 5% of the total deal value as cash (due to the fact that he was able to hit the 10% equity injection requirement using the full standby seller note). The sponsor is now the new leader of a commercial painting business that has substantial opportunity ahead for growth.
If you or someone that you know is working on a business acquisition that you plan to finance through SBA 7(a) financing, please feel welcome to reach out directly to Matthias Smith, President / Founder at Pioneer Capital Advisory LLC via email – matthias@pioneercap.com
We cost nothing to you to work with as a sponsor since we get paid directly by the bank that closes on the acquisition financing for your deal, and only after your deal closes.