Towing company acquisiton 

Pioneer Capital Advisory LLC is excited to announce the closing of a $4.1 million business acquisition for a towing company. The entrepreneur that purchased the business connected with Pioneer Capital Advisory LLC during the summer of 2022.                                                                                                                                                                        

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After identifying the target and going under LOI with the seller, the searcher engaged Pioneer Capital Advisory LLC on 8/30/2022. Within 3 days of engagement, Pioneer Capital Advisory LLC obtained 3 term sheets for the entrepreneur, 2 of which were from top 5 SBA lenders.                                                                                                                                                        

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It should be noted – The business being acquired has a general manager in place. The entrepreneur’s intention is to keep his W-2 job, which having the GM run the business for him.                                                                            

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Within 30 days of engagement, on 9/30/2022, the lender that the entrepreneur engaged issued financing approval for the financing. The debt structure included bank financing of $3,695,000 (83.29% financing on the total uses of funds), an SBA Express Line of Credit for $350,000 (Revolving Working Capital Facility), an interest rate of Prime + 2.15% fixed for 5 years (9.15% at the time of closing), and no lien on the entrepreneur’s house, due to equity in his house falling below the SBA’s threshold. It should be noted that one of the 2 top 5 SBA lenders wanted to take the lien, although it wasn’t required.                                                                                                                                                                  

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The entrepreneur will now get to keep his W-2 job while building wealth for his family via his business ownership of the towing company. He was satisfied with the financing outcome achieved. If you are an entrepreneur that is working on a business acquisition, and you want to ensure that you obtain the best financing terms available for your deal, please feel welcome to reach out to Pioneer Capital Advisory LLC to guide you through the process. Matthias can be reached via email at matthias@pioneercap.com or via phone at 608-421-2750.

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