Hi all,

I’m an ex-MBB consultant launching a search fund with my wife who works in financial services, Searchfunder member


washingtoncapitalassociates.com


We have a few questions for the community as we wrap set up before launching the search:

- What are market rates for acquisition loans right now? 10%? E.g., SBA
- What are market rates for seller financing and what are the typical terms and duration?
- When we contact a seller, how does the process work in terms of financing? How do you engage in a serious conversation with a seller if you don’t have the full financing on hand? E.g., an SBA loan
- Does anyone have any financial model templates that includes a calculation on a return/salary for us and all the other inputs? E.g., price, ebitda, revenue, financing, etc. We have one, but curious what else is out there.
- To raise capital to close our financing gap, we are considering offering non-equity loans in $100k units at 10% over 5 years, a 27.5% effective rate of return, which is competitive. How should we think about sourcing investors for this vehicle? We understand it isn’t traditional to source debt vs. equity investment but there is demand bc we’ve gotten a few investors and this is the only way a search will be worthwhile for us in terms of economics and control. Else, we would stay at MBB and Finance. We have 5 units left if anyone is interested.
- What tasks do you have interns work on? We’ve hired 2.


Thanks all,
David