Munoz & Co., TMC Holdings — Case Study
In late 2023, TMC Holdings initially contacted Munoz & Co. seeking to raise the acquisition financing required to complete the $4,250,000 purchase of a small trucking business. After helping TMC to analyze the structure of the transaction, the financing was delivered at a healthy and sustainable debt-service coverage ratio. The terms of the capital were as follows: 10 years fully amortizing, paid back monthly, at a 9.75% interest rate.
Strategically acquiring businesses in or outside of your area can be a vital expansion tool, but procuring the capital necessary to complete these transactions can be tricky & cumbersome. After investigating the target company’s cash-flow and financial data, TMC discovered that the trucking business would conservatively be on pace to generate $711,000 in SDE for the entire year of 2024. Furthermore, the company’s existing operational structure allowed for additional synergy post-acquisition.
Within 4 days, Munoz & Co. shared 2 different term sheets with the owners of TMC upon which the client successfully secured the financing with the most favorable terms, making the transaction tenable at a 1.63% debt-service coverage ratio. The client also leveraged a full-standby seller finance note as part of the down payment, helping the client to preserve post-closing liquidity. The additional liquidity has since been deployed to help spur a revenue increase of 9% in the first quarter after the acquisition was completed.
Munoz & Co. excels at procuring debt-based M&A financing in the sub $5,000,000 range, but can also assist with raising capital for: acquiring a new piece of real estate; short & long-term working capital; refinancing existing business debt; the purchase or installation of new machinery or equipment; purchasing furniture, fixtures, or supplies; changes in ownership (complete or partial). While also being able to secure post-closing working capital and preserving post-closing liquidity. Additionally, Munoz & Co. can assist with the integration of the newly acquired business by advising on the implementation of operational restructuring post-closing, allowing you to increase the acquired company’s revenue.
Upon contacting Munoz & Co. you will be assigned a dedicated Account Executive who will manage your financing in a clear & concise fashion. Our team of specialists, and founder, Marc Munoz, are prepared to assist you.
