I am reaching out to seek guidance on how to structure a deal to attract investors for our acquisition. Search. We are a self-funded search looking to acquire a SMB that has an EBITA of $600k to $1.4m. We plan to use SBA financing in a LBO, which will most likely have a portion of seller financing.
We have noticed that most funds are only interested once we are under a LOI but we are not yet under LOI and would feel more comfortable having investor support before proceeding. We have also heard that some people shop the deal once under LOI for but we are uncomfortable with this approach.
Therefore, we would like to know if there are any suggestions or guidance on how to structure the deal to attract investors before getting under LOI. Our goal is to create a mutually beneficial agreement for all parties involved.
We appreciate any help that the members of this forum can provide. Thank you in advance for your time and consideration.
Capital will find good deals. With our investor network, we can help you secure the liquidity gap relatively quickly on a decent deal, happy to hop on a call but we would need to be engage right before or right after LOI. Thus you wouldn't need to worry so much about the capital, just focus on structuring the deal and beginning gathering financial docs for the lender.