Investor Terms

by a searcher from University of Oxford

2 years ago

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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2 comments

investor from University of Pennsylvania - The Wharton School

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 --@----.com .

Also some of these topics are covered in "Modeling a Self-Funded Deal Webinar" - https://www.searchfunder.com/event/view/386

2 years ago | like reply | 1 like

searcher from The Cooper Union for the Advancement of Science and Art

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.

2 years ago | like reply | 0 likes

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