Buying without financing

November 24, 2023

by a searcher in Redmond, WA, USA

I've found a deal that I have the ability to fund without financing. Curious how many here have done deals without any financing, and why you would/wouldn't do it again.

Thanks!

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Reply by a searcher
from University of Maryland at College Park in Annapolis, MD, USA

I have done many deals with no external financing, just well-constructed and well- negotiated seller financing, or equity only deals in rollup transactions. However the specific details matter, so without understanding the particulars of your financial capability, the target requirements and business plan, ROI and diversification requirements, etc., it is very hard to comment. But assuming it is not a small transaction, if you can buy one company with no external financing, you can likely buy 2-3 with financing. What are you really trying to accomplish? I would be happy to discuss with you.

Reply by a searcher
from University of California, Los Angeles in Palm Springs, CA, USA

I have done it and the main reason was because the SBA was requiring my house as collateral and I had the money sitting there to fund the acquisition. It's helpful in the way that you don't have the payment pressure. It's not convenient you have other projects that require leveraging the money. However, timing is perfect to fund 100% if you can, interest rates are very high and is not fun to pay that much

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