Where's the money? (for down payments)

August 17, 2023

by a searcher in Rindge, NH 03461, USA

I need help please!

Where are all the debt/equity investors with all this dry powder that people speak of??
I have done one deal ($3m mfr) and am assembling the team/resources to do many more deals, BUT I am having trouble finding the sources of debt and/or equity needed to close the gap between significant seller financing and purchase price. I have looked for 2 years and not found it. Trying to line up before deals are in place so I can execute quickly when the right deal comes along. Is that correct or should I find the right deal then put out the $ need and trust that it will show up (as people say 'money is everywhere')

The deals I have are solid profitable companies making $750k+ EBITDA, needing between $500k-$2M to supplement significant seller financing etc.

Any help/guidance/suggestions/connections would be greatly appreciated!!
Thanks!
Sven

Reply by an investor
from Wright State University in Bellefontaine, OH 43311, USA

^redacted‌ we are being selective but we are still looking to invest. Also, have some other investors that would like to invest alongside us.
One thing we have heard from our clients (run an accounting firm) is that they had to get comfortable with smaller checks and more investors than they originally thought they would need to. Not sure what check size you are looking for but this maybe a factor.

Reply by a searcher
from The University of Michigan in 1075 Gills Dr, Orlando, FL 32824, USA

I would suggest developing a group of potential investors before having a deal because once you have a deal under LOI things move quickly. I found HNWIs in my community that I was able to network into. You may be able to do something similar. Also, a lot of successful searchers are now investing in deals so you may try going that route.

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