Searcher needs advice on debt
March 30, 2022
by a searcher from Cornell University in Raleigh, NC, USA
Hey fellow searchers!
I'm pursuing a self-funded search. My goal is to acquire a warehouse & implement specific kinds of high-ROI warehouse automation. Ideally, I'd like to finance this acquisition with as much debt as possible.
Problem is, I have zero experience with debt-financed acquisition. So I'd love if people could share specifics from term sheets they've gotten!
Here's what I'd love to know from your examples:
- Lender name
- Total loan value
- Loan-to-value ratio (= % of the acquisition financed with debt, as opposed to equity)
- Interest rate
- Personal guarantee required?
- Interest-only, or principal paydown required?
- Any particularly restrictive covenants?
Looking forward to hearing from y'all!
-Nish
from Marquette University in Seattle, WA, USA
https://podcasts.apple.com/us/podcast/sba-loan-secrets-with-heather-endresen-acquisitions/id1533153678?i=###-###-#### https://podcasts.apple.com/us/podcast/two-sba-businesses-for-sale-heather-endresen-of-live/id1533153678?i=###-###-####
from Massachusetts Institute of Technology in New York, NY, USA