Show Brokers "Proof of Funding" For Self-Funded Searchers?

by a searcher from University of Pennsylvania - The Wharton School

5 years ago

I've come across some business brokers who are looking for proof-of-funding. While some are okay with SBA-types of arrangements, some aren't. Does anyone know of any organizations, resources, or approaches to help show this?

20 likes
389 views
9 comments

lender from California State University, Sacramento - College of Business Administration

If you're working with a lending partner, your sr. debt provider should also be able to help provide comfort at a high-level that there is confidence to close for the right deal. --@----.com###-###-#### . Message me if you'd like to know how I'm working with my self-funded searchers in this regard.

5 years ago | like reply | 5 likes

searcher from Harvard University

This happens to me all the time when I go through brokered deals. Plenty of brokers get non-serious or difficult to manage buyer financing deals, and so I understand they want to make sure no one is wasting time.

Because of the way I've structured my fund (I raised blind, upfront committed capital), I have cash sitting in a bank acct, which I can just show a copy of to the brokers. Makes them take me much more seriously and helps speed things along notably.

I understand everyone has their own views and preferences, but my opinion is, absolutely plan on being asked for PoF, and absolutely have a means of delivering it. Do not be so confrontational when it comes to providing PoF, everyone has a job to do and if you are a serious buyer, I think it's a very reasonable ask.

5 years ago | like reply | 6 likes

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