Why are you not using debt? Investors ask.

A reflection from talking to investors on my first fundraising week.

Context: We signed a non-binding LOI a few weeks ago to acquire a $1.5M EBITDA manufacturing business based in Texas and are raising co-investments from like-minded investors.

"Why are you not using debt?" Investors ask… "You could juice up the returns."

I agree. An efficient use of debt to acquire a company can juice the returns. It also reduces optionality and increases financial risk. The devil is in the details, right?

Continue reading here: https://klis.ck.page/posts/what-i-wish-i-knew-2