A seller just emailed that they'd "like to see some documentation of your credit worthiness. Before we spend a bunch of time and energy, we’d like to know that you have the capital to do some sort of transaction."
I'm self-funded and don't want to share exactly what funds I have available. My hunch is that this business is pretty small, so I'm really not worried about the equity financing piece. I don't know the exact EBITDA of the business (it's a proprietary, non-brokered deal) so I don't want to reveal "I can pay up to x" if I then ascertain the business is worth .5x. Plus in general, I just don't like sharing personal financial information.
Any tips for how to reply, and what (if anything) concrete to share without pegging it to a specific dollar amount (of either my funds, or the EV I can pay with my funds + loan)?
Seller asking for "documentation of my credit worthiness" - self-funded

by a searcher from Harvard University
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
260 views
14 comments
Sign in to see all replies.
Create an account.