Post-LOI Search Capital for Independent Sponsor

December 21, 2020

by a searcher in Toronto, ON, Canada

Currently have a deal past the LOI stage and looking to raise C$25-50K in search capital to underwrite initial deal expenses. Opportunity to be fully recouped with a step-up at close. Deal is a $1.5M EBITDA business in the consumer goods space. Strong confidence in closing deal as management is excited about the transaction and DD has advanced well. Reputable selling firm is vested in closing deal as well. Expected close is Feb, 2021.

Reply by a searcher
from Harvard University in Denver, CO, USA

This is the first time I've heard of someone raising capital for just the post-LOI DD phase of a search. Would love to here how it turned out, and what kind of terms folks have seen for this type of structure either on this deal or any others with similar approach.

Reply by an investor
from University of Pennsylvania in Washington, DC, USA

I'd be interested in learning more. DM or redacted

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