Question by Dax: How much recognition formation tin a company with an A1 Dun and Bradstreet rating qualify for?
I have seen a “seasoned company” for sale that has an A1 Dun and Bradstreet rating. How much credit line and what type of terms usually tin a company with this ascribe rating qualify for? The seller states that it could probably qualify for 1mm with an A1 rating.
Best reply:
Answer by Gemin K
The rating is a factor, but there are many other ingredients such as assets, liabilities (including the aging of the AR/AP). You can return an appraiser to eigenvalues your in/touchable assets. But the biggest factor are cash flowing, EBITDA margins, and total revenue. Assuming your business is doing 1MM in EBITDA onxxMM revenue, you tins secure for maybe 2.5 times that amount. It all depends on the dynamic. Also, if functional capital is a crucial need, you tin hire an investment bank to discovery you a mezanine lender that specializes in those deals. They usually infecting higher multiples on workings cap if your business is on the up and up. Good circumstances.
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