Tag

leverage

2 insights

Five add-back categories in a grid, each with the amount claimed in the sale memorandum and the amount a lender accepts. Owner compensation, $350,000 claimed and $260,000 accepted. A legal settlement, $150,000 and $50,000. Pro forma fuel savings, $250,000 and nothing. Owner personal expenses, $120,000 and $40,000. Deferred maintenance, $80,000 and nothing. $950,000 claimed, $350,000 accepted.

Your $4 Million of EBITDA Is $3.4 Million to the Lender

A trucking company is marketed at $4.0 million of adjusted EBITDA. The lender accepts $3.4 million, which cuts the debt available by $1.8 million and raises the equity the buyer has to write by the same amount, after the price is agreed.

Financing Strategy Borrower Advisory

A single stacked bar showing platform deal debt at 3.5 times EBITDA in Q1 2026, split between 2.3 times of senior debt and 1.2 times of junior capital, with a marker showing that senior debt alone reached 2.9 times in 2021.

The Debt Came Back. The Senior Debt Did Not.

Acquisition leverage has recovered to roughly where it stood at the 2021 peak. On platform deals the senior layer has not, and the gap was filled by junior capital, which is not the pool most buyers approach first.

Capital Markets & Trends Borrower Advisory

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