How much to invest?

searcher profile

September 13, 2023

by a searcher from University of California, Berkeley in Sausalito, CA 94965, USA

As a fiest time acquirer, if you had liquidity of 3M (currently invested in stocks), how would you go anout financing an acquisition?

1-find something small enough to pay cash for?
2-small asset backed loan for the leverage and keep everything fully invested in the markets?
3-SBA loan for small acquisition?
4-go big and maximize acquisition target based on other available financing?


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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Lots of different ways you can go here. Part of it depends on your strategy. Is your goal to buy multiple businesses or one business? Do you want a larger business or a smaller business.? Do you want investors involved or do you want to maximize what you can do on your own? Happy to have a discussion about your particular situation and interests and try to provide more advice as well as fill you in on lending options available. You can ping me here or directly at redacted
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Reply by a searcher
from Naval Postgraduate School in Washington, DC, USA
I would maximize available financing. Bringing on investors not only allows you to maintain more liquidity, but provides you with a built-in advisory base. If you have a good enough deal, there is capital out there to tap into. I would only tap into your funds if an investor falls out last min and you need to bridge a funding gap to get the deal across the finish line.
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