Business Acquisition Finance

$4.5m Commercial Facilities

Business & Corporate Finance, Debt Advisory

$4.5m

100% Share Sale / Business Purchase

Allied Health

The Scope

Our client was purchasing an additional business to add to their portfolio of companies and identified an Allied Health Business based interstate with normalised EBITDA earnings of c. $2.62m.
The business purchase was structured with an earn-out and an initial payment of $10.52m required on settlement.
Nexus Capital Partners was engaged to provide initial debt capacity and leverage parameters and the client was wanting to seek as much debt as possible to create a higher internal rate of return (“IRR”).
The transaction was to be structured with no tangible security to the lender i.e a cashflow/balance sheet lend only with no personal guarantees due to the structure of the group and purchasing structure.

Working closely with the clients, we prepared a comprehensive Information Memorandum which included the key information we know lenders want to see and a detailed debt capacity analysis based on multiple years and scenarios.
Allied Health is typically a favourable sector for the banks, so we postured the transaction and leverage to make the transaction “bankable” as lending in the SME space can be difficult with no security and no Director’s Guarantees regardless of how favourable a sector is looked upon by a lender.
Like all of our engagements, we took the lead on the entire debt exploration process and worked with all stakeholders to ensure a smooth process to settlement.
We utilised our relationships and expertise within this space to work closely with a lender to deliver a simple Senior Debt 5-year facility.

A $4.50m debt facility which equated to a normalised Debt/EBITDA leverage of 1.71x.
Delivered a credit-endorsed term sheet within 2 weeks of our information pack being received.
5-year loan term repaid to nil over the term with no tangible security and/or personal guarantees.