Which lenders and investors will consider a turnaround?

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August 10, 2018

by a searcher from Harvard University - Harvard Business School in 126 Brewster Rd, West Hartford, CT 06117, USA

I have been looking for “enduringly profitable” businesses to acquire, but I found a turnaround opportunity that is too good to pass up. This has a far different risk-reward profile than the typical search fund acquisition target and requires $1 million of capital so I’m not sure which lenders and investors would consider it. Thoughts?
 

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Reply by a searcher
from University of Worcester in United Kingdom
If a business is in trouble, throwing more money at the business without solving the problem is like putting water in a leaky bucket. Focus first fixing the leaky bucket and ways that you can generate new cashflow with the existing assets and resources the business has at its disposal. Happy to take a look at the deal as I've worked on plenty of turnarounds.
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Reply by a searcher
from Seton Hall University
Lending depends on the cash flows but may be tight if it is a turnaround. Best to approach equity investors to lead the acquisition.

It will help if you have industry experience.
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