As A Self-Funded Searcher Who Pays For Dd Costs?

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07/01/2019 Redacted Redacted

searcher University of Chicago Columbia University - Columbia Business School

AS A SELF-FUNDED SEARCHER WHO PAYS FOR DD COSTS?

I've found a deal, but with regards to DD (accounting and legal) do I front this cost knowing that perhaps the deal dies and I'm out those funds, or can I ask my equity investors for help with funding this cost?  Any creative solutions that people have used?

4 likes 191 views 6 comments

investor Columbia University - Columbia Business School Carnegie Mellon University - 07/02/2019

Give me a shout - I think we can help here. [redacted]

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lender University of Missouri - Columbia - 07/03/2019

some intermediaries will take a look on contingency (either the whole thing or a portion) and roll it into the next deal you do. If you want a screen up front from the lending side feel free to contact at [redacted]

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professional University of Edinburgh - Business School University of Idaho - 07/09/2019

We're just one firm but here's how our model works: we provide a platform for finding DD advisors/experts in your space. We charge a low monthly fee to make the platform accessible knowing you'll look at a LOT of deals that are not a good fit. We charge a success fee on the deal (or deals) that you close which makes us whole. I think this is a relatively common model from what we've seen.

https://inquireof.com

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University of Wisconsin - Madison - 08/21/2019

Kyle - would be interested in learning about how I get my firm on your platform etc.

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Universidade Federal de Minas Gerais - 08/20/2019

Perhaps the money to be asked to investors could also come to the SF structure as equity (paid-in capital). In this regard, "search phase investors" may be pleased to include this additional DD amount in the previously agreed (or part of) step up conditions.

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University of Wisconsin - Madison - 08/21/2019

Joseph - sometimes you can find providers who will roll the diligence fee if they are comfortable with you knowing the proceeds will be paid out of a successful deal funding. For example, if you start diligence on one target and it dies, they may roll that fee into the ultimate successful deal. Send me a note at [redacted] if you'd like to discuss further.

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