Case Study · Buy-Side
Real Estate Staging Acquisition: 140%+ ROI in the First 12 Months
LCG sourced and managed the acquisition of a real estate staging company on the East Coast on behalf of a buyer partner. The deal was structured with just 10% down, 80% SBA financing, and a 10% seller note with revenue-based clawback protections. Despite a funding delay caused by seller collateral issues, the buyer is projected to make well over 140% return on investment in the first 12 months of ownership.
The Opportunity
A High-Margin Services Business with Strong Cash Flow
The target was a real estate staging company on the East Coast producing $900,000 in annual cash flow on a $2.6M purchase price. The buyer was a previous business owner but had no direct experience in the real estate or staging industry. LCG sourced and managed the deal on behalf of the buyer partner.
The Approach
Protective Deal Structure with Revenue Clawbacks
LCG structured the deal with a 10% buyer down payment, 80% SBA financing, and a 10% seller hold on a 10-year term with a 5-year balloon. The seller note included a revenue clause — requiring the business to hit certain revenue goals to unlock the note. This is a structure LCG commonly uses to protect buyers: leveraging seller notes with churn clawbacks for businesses reliant on recurring revenue or repeat customers, and sales-related metrics for revenue-dependent businesses.
The Outcome
Strong Returns Despite a Funding Delay
The deal faced one obstacle: funding was delayed because the seller needed to sell their house to free up collateral. Despite this delay, the deal closed successfully. The buyer is projected to make well over 140% ROI in the first 12 months of ownership, with a Year 1 DSCR over 2.0x against a bank requirement of 1.3x.
By the Numbers
Deal outcomes that speak for themselves.
From a stalled search to a closed deal and a growing business — in less time than most searchers spend reviewing CIMs.
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