What % is required to be funded by the buyer in a self funded deal?

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management

4 years ago

I’m wondering how much “skin in the game” (in cash) banks or investors might require from someone doing a self funded deal. Or are they willing to fund the whole deal, since the buyer will likely take on a personal guarantee and other risks?

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investor from Stanford University

Depends on the industry and type of business but probably around 20%

2 months ago | like reply | 0 likes

searcher from National College of Ireland

Hi Billy, my experience with the above is that banks will look for a minimum 20-30% skin in the game. But that could chance given your history/track record. Also if you have a strong business already and your looking to get a “bolt on” to your existing company, you could possibly get it lower than 20%. I’m saying that I am based in Ireland, and I hear in the US you can get the###-###-#### in the SBA so you really only need to come up with 5% for certain deals subject to meeting the necessary criteria.

3 years ago | like reply | 0 likes

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