Facts and myths about majority equity / control

searcher profile

January 24, 2022

by a searcher in Montreal, QC, Canada

The information published typically suggests the self-funded model will lead to majority equity / control for the searcher.

What are the facts behind this?
Where can the path to majority breakdown?

i.e. can a searcher only secure a majority with an SBA loan, putting 75%+ debt and a PG on the business?

How should a self-funded searcher (who finds a great deal for a high quality company in a dynamic industry) approach negotiations with investors when SBA is not an option, and they will need to select from other forms other forms of debt that typically roll-up to 60%-70% LTV ?


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