Model for 100% Equity Deals?

by a searcher from Carnegie Mellon University - Tepper School of Business

1 year ago

Curious if anyone has a model for 100% equity (no leverage) deals? 

Similar to how Permanent Equity structures their deals. I'd be looking to raise outside equity for a highly attractive deal, but the owner is anti-leverage. I'm still wrapping my head around the mechanics of raising 100% equity while stilll maintaining meaningful ownership. Thanks!

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3 comments

investor from Oklahoma State University

You could use preferred shares to help fill the cap table at first then strategically use debt after closing on the transaction like Daniel mentioned.

1 year ago | like reply | 0 likes

searcher from Carnegie Mellon University - Tepper School of Business

Assume i can buy a business for 2x on $1M of SDE. But SBA won't touch it, and I can only put down ~15%. Trying to figure out my options. All ideas welcome!

1 year ago | like reply | 0 likes

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