Still in early stages here - I'm going to be relocating to Toronto in the next 12 months with my wife and will be kicking off a self-funded search.
I've read most of the standard ETA literature and its obviously US-centric. We will not have access to SBA in Canada and I'm wondering what a -typical- post-transaction cap structure looks like. I have read that a###-###-#### % SBA loan with 5%/5% earn out and equity contribution is common in the US, but I get that would not be the same up here... I'm assuming banks won't provide that much financing.. Is mezzanine debt or preferred equity more common? Do transaction multiples reflect this?
We are not shy about personal guarantees and my partner and I currently earn >$1m household. Just wondering how much personal equity (in % terms) I will need to put up to acquire a business - targeting a range of $750 - $1.2M EBITDA.
Any guidance would be greatly appreciated!
What is typical finance structure for acquisition in Canada without SBA
by a searcher from Memorial University of Newfoundland
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