Holding company deal structure

searcher profile

June 26, 2023

by a searcher from University of North Texas in Dallas, TX, USA

Hi there! I'm looking to start a holding company and want to know the most effective methods of attracting capital without relying on SBA funding. Also, how can I structure a permanent equity model with investors without an exit plan after acquisition?

3
6
255
Replies
6
commentor profile
Reply by a professional
from University of Minnesota in Minneapolis, MN, USA
You need the investors more than they need you at this stage, I would encourage you to be very transparent about your objectives, and be open to the feedback you receive from the investors you talk to. Some investors love the permanent equity model (look at Brent Beshore's success) but they have to know about it on the front end. Let the practical business concerns of the investors drive the ultimate structure of your vehicle. When you've proven yourself, you can be more aggressive setting the terms. Good luck!
commentor profile
Reply by a professional
from Georgetown University in Maryland, USA
Ike, I think there are too many variables to adequately respond. I structure holdcos all the time, but it’s important to understand your goals, market sector, and potential investors. I warn you that 99% of the time searchers want to structure Holdcos, it is unnecessary at this stage.
commentor profile
+4 more replies.
Join the discussion