Posted by Justin on July 27, 2003 at 10:47:45:
I am in the process of acquiring a mortgage banking company in Colorado and am looking for funding sources or possibly a joint venture arrangement. The company has been around for 15 years and has an excellent history. It was reformatted into an Internet-driven model in 2000 and revenues have grown by leaps and bounds. Currently, approximately 95% of their business is processed via their web site. The business model is very scalable and can easily expand into surrounding markets. Commercial financing is also a possibility and is currently untapped by the company. 2002 net earnings before taxes was over $1.7 Million and the first four months of 2003 netted over $1 Million.
I have negotiated with the current owners to pay $2.5 million at closing. We are currently negotiating a remaining portion to be structured as an “earn out.” Basically, this gives the owners an ongoing vested interest in the continued success of the company. By doing this, I am not tied to today’s valuation based on today’s level of finance/refinance activity. The current owners have agreed to stay on with the company for an extended transition period of at least 6 months, and as long as 12 months as consultants. They have some great ideas for business growth and reduction of expenses, and are excited about the opportunity to take a step back from day-to-day operations and assist with the implementation of new strategies and business planning.
I am seeking funding between $500,000 and $2.5 million. Even at half of the current revenues, debt service is easily covered. If this is within your capabilities, let me know if you would be interested in putting something together. I have an Executive Summary and Proposal that I can email or fax. Thanks!