How would you structure a fully funded deal?

searcher profile

September 14, 2024

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Los Angeles, CA, USA

If I am looking to buy a $###-###-#### business and I need to fully leverage the money to fund it from individual investors, what kind of deal structure should I offer the investor that would be fair yet competitive? Assume the business is making $###-###-#### a year and betting###-###-#### a year. My first business was self funded with personal funds and an SBA, but this one would require leverage. Thanks in advance for your thoughts.

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commentor profile
Reply by a searcher
from Malaspina University College in Calgary, AB, Canada
What industry that business is in? Does it have any assets to leverage on?

Did you have conversation with seller by proposing the seller financing?
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
^redacted‌ just to provide clarification, with the new SBA SOP, if you are a minority non-controlling owner in a business but were still required to guarantee the loan because your ownership interest was over 20%, you could qualify for up to another $5 million to buy another business in another NACIS code. However, if you are the controlling or majority interest in a deal, there is no additional available funding for you.

^redacted‌I would be happy to have a discussion to look at potential financing options and see if there is a way to assist here. You can reach me here or directly at redacted
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