Finding investors for $2.5M EBITDA company (self-funded searcher)

investor profile

March 10, 2020

by an investor from University of California, Berkeley - Haas School of Business in San Francisco Bay Area, CA, USA

I'm a self-funded searcher and looking for advice how to identify investors for a relatively large target. This is a proprietary deal I have been working on for over a year and the seller finally decided to sell to me.

The company is in the maintenance services space with 80%+ recurring revenue (mostly contractual) and a long history of profitable growth. We agreed on a 5x EBITDA purchase price and I have visibility to debt financing in the 2.5-3x EBITDA range. I need 6-7M in equity to close.

I have identified a CEO for the business who is currently working in sales at a direct competitor and knows how to grow the company. I plan to join the company as CFO.

I'm looking for advice how to identify investors for self-funded searcher deals, particularly investors who are OK giving me control and getting typical economics for self-funded deals (e.g. 8-10% preferred return plus 20-50% of the upside).

Appreciate any advice from the forum.

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commentor profile
Reply by a searcher
from University of Pennsylvania in Indianapolis, IN, USA
I have a network of 600+ investment groups that cover all deal structures (minority, majority, debt etc.) and some senior debt options that will go up to 90% LTV. If you want to send a DM we can exchange details and with a bit more information I could likely provide a few introductions.
commentor profile
Reply by a searcher
from University of Pennsylvania in Miami, FL, USA
Difficult to be of any help without additional information.
Do you have an investment memo which outlines the business, the numbers, the growth, bios, etc.
People may be willing to make introductions if they had the information.
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