Financing an HVAC Roll-Up: How We Turned Three Layers of Acquisition Debt into One $4.22M SBA 7(a)
Cressida Capital advised a Virginian HVAC roll-up on a $4.22M SBA 7(a) and pari passu structure that consolidated SBA, seller and bridge debt and added working capital.
Growth through acquisition often leaves owners with a patchwork of debt. That was the case for a Virginian HVAC roll-up, a holding company that acquired several HVAC firms. It was carrying an existing SBA loan, a seller note and short-term bridge financing.
Cressida Capital structured the capital and placed it with an SBA lender partner: a $3,720,000 SBA 7(a) term loan alongside a $500,000 pari passu conventional loan, for $4,220,000 in total. The transaction closed in 8 weeks.
The result:
- One 10-year, fully amortizing structure in place of three separate debts
- About $300,000 in new working capital
- Secured by business assets, with no commercial real estate purchase needed
Our job is to find the right lender and structure for each business. If your company is carrying acquisition or bridge debt, contact Dean Stehlik at deans@cressidacapital.com or 213.481.6267.
Cressida does not make or fund SBA loans. SBA loans are made by SBA lender partners.