When $1.2M Nearly Went Down the Drain

One investor came to us with a common problem:
He was excited, impressed, and emotionally invested.

The opportunity?
A growing 3PL business valued at $6M. The investor was putting in $1.2M for 20%—a fair deal on paper.

The operator had energy. Vision. Confidence.
But something felt... cloudy.

We visited the facility. We spoke to staff. We reviewed invoices.
And the red flags came fast:

• Major client dependencies the operator hadn’t disclosed

• Key leadership planning to leave

• A facility lease up for renewal—with no plan in place

• A $400K receivable that hadn’t been collected in over a year

The investor hit pause.

In the end, he restructured the deal as a convertible loan—with performance milestones that needed to be met before equity conversion. Six months later, only half were met.

He was glad he waited.