Creative financing for first acquisition

by a searcher

2 years ago

As the title says I am searching for my first acquisition. I am curious what types of creative financing you have seen for $1M-$5M purchase price? I hear a lot about a buyer cash/seller note/SBA combo but wondering if there are other things out there to look into.

Another question: what is the least amount of cash you have seen a first time acquirer put in for $1M+ deal and how did they get it done?

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10 comments

lender from McGill University

Have you considered revenue-based financing? My firm is a revenue/cash flow based lender, but we are unique in our space as we frequently fund acquisition deals. Essentially, we underwrite the target company's financials, allowing you to leverage the target company's cash flows. You can use this as your own cash consideration (down payment) or as a gap piece in the cap stack to get the deal done. Email me at --@----.com if you are interested in discussing!

2 years ago | like reply | 0 likes

lender from The University of Chicago - Booth School of Business

I am biased but, in the $1MM to $5MM space, you cannot go wrong with SBA financing.There is no other way to get up to 90% financing at a single digit interest rate without an equity give up.

2 years ago | like reply | 2 likes

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