Acquisition credit facility with $5m equity
June 18, 2024
by a searcher in Chicago, IL, USA
I have a business partner who wants to provide $5m in equity for us to acquire companies.
We are interested in using this $5m to establish an acquisition debt facility.
We are wondering how much debt we would be able to secure with the $5m equity we provide. I have read that we could possibly leverage it to have a $50m debt facility available to us, or perhaps more depending on deal structure.
Has anyone had experience with putting a debt facility in place? If so, what terms were you able to secure? I would be interested to learn more. Thank you.
from University of Massachusetts Amherst in Boston, MA, USA