Connections to local debt lenders

searcher profile

May 02, 2021

by a searcher from University of Pennsylvania - The Wharton School in Washington, DC, USA

Looking for advice on how to approach traditional bank lenders. Are cold calls and emails with background information the way to go here? There doesn't seem to be a good marketplace for finding and identifying these groups.



Any connections would also be greatly appreciated.

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Reply by a searcher
from McMaster University in Toronto, ON, Canada
Heather, posted above, is super helpful and knowledgeable, highly recommend you attend one of her sessions regardless of your knowledge base.

If you’re going the conventional bank financing (eg max 3x EBITDA leverage, min $1.5mm EBITDA... note not SDE) route, just Google the familiar banks near you and you’ll find a bunch.

If you’re going the SBA route, try emailing your local bank or check out this list of SBA lenders by volume: https://www.sba.gov/article/2020/mar/02/100-most-active-sba-7a-lenders

The good relationship managers will be helpful, specific, credit oriented, sometimes hard to pin down.
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Reply by a lender
in Yorba Linda, CA, USA
I'd suggest you start by asking your network for introductions to lenders. Here is a piece we wrote on this subject: https://www.liveoakbank.com/sponsor-finance-resources/considerations-for-search-fund-acquisition/ I hope it is helpful. We also have a call every week for Self-Funded searchers who are interested in preparing for the debt raising process. I can send you the registration link if you shoot me an email: redacted
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