PERSONAL GUARANTEE (SELF-FUNDED SEARCH)
Are there ways to avoid a personal guarantee if pursuing a self-funded search? Have heard there is an EBITDA threshold - wondering if that is true and if there are any other considerations. Thanks!
Are there ways to avoid a personal guarantee if pursuing a self-funded search? Have heard there is an EBITDA threshold - wondering if that is true and if there are any other considerations. Thanks!
Luke...thanks for reaching out with this!
Understand the reticence to take on the PG, but worth thinking about are the benefits of the SBA program - especially (IMO) a lack of maintenance covenants, lower rates, and potential for higher overall leverage ratios. What I've seen some do is get into the business under a loan with personal guarantee and, all things going well, recap to a different product without a PG within a few years.