My business partner and I conducting a self-funded search and looking to raise capital from investors.
Can anybody provide examples of a self-funded model/structure for equity investors that supports a long-term hold of a business (not a typical 5-7 year exit)? Any suggestions on resources for becoming more knowledgeable about equity terms for the self-funded model will be helpful as well. Thanks!
Help on Self-Funded Search Equity Investor Deal Terms
by a searcher from University of Texas at Austin
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b) If equity investors want a shorter hold than you do, the fundamental way of approaching it is building out a mechanism to place a fair valuation on the company at a later date and then relever and buyout equity that wants to be bought out.