Self Funded Searcher - Equity Timing
May 30, 2023
by a searcher from University of California, Berkeley in Sausalito, CA 94965, USA
I am currently a self funded searcher. I'm in search of business generating about $750k of EBITDA/SDE. I have enough cash on hand for a down payment (up to $750k). I would like to de risk the business acquisition and try to include some additional equity partners.
Is there any particular advice for the timing of reaching out to investors? What level of detail needs to be shared on a deal to get investors interested? Any thoughts on the amount of total equity that would be reasonable to raise in this situation?
Thanks.
from Full Sail University in Orlando, FL, USA
In general, you should start building relationships as soon as possible. If you know you're going to raise equity, why not do a traditional search instead of self-funded?