The deals I want to pursue require a significant equity infusion. How does one secure that portion of the financing? It exceeds what I can accumulate over an extended period. One option is to let's say take the 25% equity needed for a loan and offer the financier perhaps 50% ownership of the company. Then, over time, either buy them out of the company or allow them to acquire most of it. Alternatively, if the financier provides all the equity, are they entitled to the entire company? Or do investors seek to contribute the equity portion and receive, for instance, double their investment back within 7 years? I know there are other approaches as well. For instance, in agreement with the business seller, you could approach suppliers or customers and propose rebates or longer contracts in exchange for equity.
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