For Ace Hemani. Generated June 14, 2026. Brands priced at SDE x4, acquired with a 10% equity injection and a 90% SBA 7(a) change-of-ownership loan. SDE and debt verified from QuickBooks. Tax set aside per instruction.
The deal at a glance
Bhais get
100% of KV
Value $1,703,548 (4x SDE of $425,887)
Hemanis get
100% of WLV
Value $920,292 (4x SDE of $230,073)
Hakams
Cashed out, exit
~$280,000 for their net 1/3
Why it has to be one consolidated loan, not two
Brand
Value (SDE x4)
Existing debt
Value minus debt
Keto Vitals
$1,703,548
$449,518
+$1,254,030
We Like Vitamins
$920,292
$1,421,862
-$501,570
WLV owes more than it is worth. Its $1,421,862 of debt exceeds its $920,292 value by $501,570, so WLV cannot stand alone on its own SBA loan. KV's surplus has to carry that overhang. So the clean version is a single consolidated SBA loan across both brands, with more of the debt allocated to KV (which can service it) and less to WLV (so it can recover). The brands can split on ownership, but the loan stays linked until WLV is healthy.
Split shown proportional to brand value. A 50/50 split of the injection ($122,569 each) is the alternative if you and the Bhais want to share the down equally. Your check is the lever: putting in more lets you claim a preferred return on the WLV working capital you fund.
Where each family lands
Family
Puts in (10% down)
Walks with
Owns after
Hakams
0
+$280,000 cash
nothing, fully exited and off all guarantees
Bhais
$159,142
0
100% of KV, carry its loan share
Hemanis (you)
$85,996
0
100% of WLV, carry its loan share, plus the $300k to fix it
What this gets you for ~$86k down: 100% of WLV, the $300k inventory fix funded inside the loan, and all of the turnaround upside. WLV is underwater today, so you are buying the recovery cheap. The risk is the personal guarantee on your slice of the SBA loan, so keep your guarantee sized to WLV's allocated debt, not the whole facility.
How WLV actually gets fixed: KV carries the debt
WLV cannot service its own debt today. Its $1,421,862 of debt costs $312,948 a year against $230,073 of SDE, a DSCR of 0.74, which is why it is starving. The fix is to load the debt onto KV, which carries it easily, and use the freed-up cash to pay WLV down to a level it can service. Figures assume an SBA 7(a) loan at a 10.5% rate on a 10-year term (existing loans run 9.5% to 11.25%); SDE is the cash available to service the debt.
KV takes a larger loan, used for
Amount
Refinance KV's own existing debt
$449,518
Cash out the Hakams
$280,000
Pay down WLV's debt
$670,482
KV loan total ($449,518 + $280,000 + $670,482)
$1,400,000
That $670,482 of KV proceeds applied to WLV drops WLV's debt from $1,421,862 to $751,380. WLV then refinances that plus the $300,000 inventory tranche.
The DSCR after the fix
Brand
Loan after
Annual debt service
DSCR
KV (Bhais)
$1,400,000
$226,660
1.88
WLV operating debt (you)
$751,380
$121,648
1.89
WLV including the $300,000 inventory tranche
$1,051,380
$170,218
1.35
Both brands clear the 1.25 SBA floor on today's numbers. WLV starts at 0.74 and lands at 1.35 even carrying the new inventory money, and that ratio climbs as the inventory restock lifts sales. KV stays strong at 1.88. The mechanism is the whole point: KV's surplus borrowing power rescues WLV, so the deal can clear a lender.