How are searchers in Ontario handling "personal guarantees" for senior debt financing?

by a searcher from University of Toronto - Joseph L. Rotman School of Management

3 years ago

Hello! I am early in my journey right now and looking to connect with someone who has completed a deal through the search fund model who is based in Ontario, Canada. One of the main questions I have is landing debt financing in Ontario. I understand the equity side a little bit better, but would love to learn from someone who has gone through the process. Specifically, I am curious about how people are handling the "personal guarantees" when it comes to senior debt financing in Canada. Does BDC offer senior debt? Any of the major Canadian banks? I am motivated to launch a Search Fund once I have a clearer picture of the debt side of the process..

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searcher from University of Toronto

Hi Shobhit, I'm based in Toronto and have gone through the PG discussions with all the major banks here. Happy to connect to share some insights.

3 weeks ago | like reply | 0 likes

searcher from The University of Chicago - Booth School of Business

I can’t speak to deals in Canada, but for most searchers a PG isn’t worth the paper it’s written on. What are they going to do, take your student loans? Most of us don’t have any assets worth taking. People are way too afraid of personal guarantees when they should be afraid of the opportunity cost of spending 5-7 years making other people money instead of themselves.

3 weeks ago | like reply | 1 like

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