HOW MUCH TO OFFER INVESTORS?
I will have a signed LOI shortly to buy a business in the U.S. making $1.5 million a year (EBITDA) and will start negotiating with investors.
I need to know whether investors expect to get dividends or if they make their money when the business is sold? Or a combination of the two?
What is the normal range of returns they expect?
If they expect dividends, what is the range (% on capital invested)?
Do most investors prefer equity or senior debt (assuming I choose not to get a bank loan)?