Self-funded search

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March 15, 2020

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Los Angeles, CA, USA

For those pursuing a self-funded search and considering a mix of debt/equity to finance the acquisition: What is the typical equity distribution to outside investors? Would the equity in the acquisition simply be a % based on the purchase price of the acquisition and the amount being funded via investors? Any case examples or further reading on this would be helpful!

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Reply by a searcher
from The University of Chicago in Nashville, TN, USA
I would check out the "How to Model a Self-Funded SBA Acquisition" video on Acquiring Minds, they even provide the template. As you mentioned, it really depends on each deal and the step up.
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Reply by a searcher
from University of Oxford in Santiago, Región Metropolitana, Chile
I would love to hear an answer to it as well. Good question
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