Mold Remeditation Business 

Pioneer Capital Advisory LLC was approached by an entrepreneur working on an acquisition of a mold remediation business. The entrepreneur was drawn to the opportunity due to the company’s rapid growth over the last several years. The business had grown from $588K of revenue in 2019 to $2.56 Million of revenue in 2021. Due to the rapid amount of growth, and the seller pricing the business off of recent financial performance, obtaining financing for the deal was an involved process.                                                                                                  

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Utilizing established relationships with top SBA lenders, Pioneer Capital Advisory LLC was able to procure 2 financing proposals from top 20 SBA lenders. The bank that approved the financing for the entrepreneur provided an SBA 7(a) loan for $2.56 Million (~80% of the total use of funds) and an SBA Express Line of Credit for $125K to provide the entrepreneur with access to working capital to continue growing the business. The SBA 7(a) loan included $50K of working capital to provide cash to the business' balance sheet for the entrepreneur.                                                                                                    

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Providing some context on the deal itself, with the amount of leverage (80% financing), DSCR in 2019 was 0.26x, DSCR in 2020 was 0.58x and DSCR in 2021 was 2.17x. The entrepreneur now owns a $3.1 million enterprise value business, and has joined the ranks of America’s next generation of entrepreneurs.                                                              

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If you are a buyer of a small-to-medium sized business and are looking to finance a business acquisition, and want to ensure that you obtain the most favorable financing terms for your deal, please reach out to Matthias Smith with Pioneer Capital Advisory LLC. He will help with ensuring that your deal is presented to the lenders that it is the best fit for and will run a competitive financing process to ensure that you obtain the best deal terms.  

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