What would be some acceptable term sheets you’ve seen lately for an equity raise for a self-funded searcher has a deal under LOI…….
- Essential Services business with $1M EBITDA,
- Price 4X EBITDA ($4M)
- 75% - 85% debt with searcher holding PG + seller note
- Equity Raise ~500k-$1M
- Modest growth in base-case with 25-35% IRR
- Searcher has industry experience
Investor Deal Structure
by a searcher from Northwestern University - Kellogg School of Management
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Deal###-###-#### % pref, 20% conversion to CS, base case return of capital ~2 years.
Deal###-###-#### % pref, 30% conversion to CS, base case return of capital ~4-5 years.
Upcoming Deal: 10% pref, 25% conversion to CS, base case return of capital ~3 years.
All have hard-working, smart, and good CEOs. Hope this helps!