Hi all,
One thing that's a little ambiguous to me on self-funded 7a deal structures is whether capital provided by the searcher as part of an equity injection counts towards common shares or preferred shares. I suspect the answer is 'it depends on what you can negotiate', but I'm curious if there are any norms here the investor community expects.
I.e., can a searcher participate in their own preferred equity raise where common shares are consideration for the PG, search, deal negotiating, etc. and searcher money put in would buy preferred shares alongside equity investors?
Thanks!
~Austin
Clarification on norms for preferred and common equity in self-funded model

by a searcher from University of California, Los Angeles - UCLA Anderson School of Management
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
84 views
2 comments
Sign in to see all replies.
Create an account.