M&A business valuation in Pine Forestry/Lumber industry negotiation deal

A pine forestry harvest business is looking for funding aiming vertical integration to invest in a lumber factory. They invited me to be an investor and I am evaluating their business to determine the finance engineering to fund them. Financials: Today the forestry business, they report annual net cash flow of $4.5 millions. I was evaluating this project within a 5 years timeframe since they have a concession contract to explore the forest in 5 years. They need $2.5 millions to build the factory. The factory project would initially have a annual net cash flow of $7.6 millions. Market context: The market supply for this kind of pine log will become scarce in the next years and since they bought this exploration concession for a low price, there is a value add at the project due the guarantee of raw log input supply to the factory for the 5 years of operation in analysis. And also the factory could continue its operation after the fifth year thorough new negotiations. The annual interest rate in the economy is 12%. Of the $2.5 millions investment to be made, the sawmill machinery ($1,5millions ) could easily get a subsidized funding bank credit of 7% interest per year. However they don't do it themselves because they don't have collaterals and guarantees to get the credit. I could do it. How do I enter in this business and under what evaluation?