HOW DO YOU DECIDE ON TARGET DEAL SIZE AS A SELF-FUNDED SEARCHER?

This may be a bit of an ignorant question, but would appreciate some views:

Do you use your own available equity as a basis and apply leverage (e.g[redacted]%), then see what the business can afford in terms of pay-down at that level of debt, to come up with total target EV?

Or do you choose a wider range and fill the gap with outside equity as the need arises during/after LOI?

What process / thinking should I use to decide what business size I should have in my target statement as a self-funded searcher?

Is the first-order question "what business would provide me with the right return, at the lowest risk, regardless of size" or is it "what business can I afford to buy"?

Thank you!



share: