Investor Terms

searcher profile

August 07, 2021

by a searcher from University of Oxford in Charlotte, NC, USA

Quite curious to hear what the going rate is for acquiring capital at acquisition phase...is it usually an 8% preferred plus a certain percentage of common equity based on dollar amount provided? Asking from a self-funded searcher looking for capital at acquisition time. Thanks for the help!

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commentor profile
Reply by an investor
from University of Pennsylvania in Washington, DC, USA
My suggestion - there's a few threads on this exact question - check the search box and you'll see a number with some good answers. Basically - there's a pref rate & a common % and it varies by size of deal, quality of deal, searcher network, etc

I did a presentation "Tips for Self-Funded Searchers from an Investor" - https://www.searchfunder.com/event/view/280 - happy to share my presentation/slides from the webinar where I cover some of these topic - email me redacted .

Also some of these topics are covered in "Modeling a Self-Funded Deal Webinar" - https://www.searchfunder.com/event/view/386
commentor profile
Reply by a searcher
from The Cooper Union for the Advancement of Science and Art in New York, NY, USA
I think it depends quite a bit on the amount of Capital you are looking for. SBA 7a loans are usually prime + 2 or 3 so that gives a good starting point of what to to expect. Basically a premium above that.
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