LOI Signed $3.25M deal

December 24, 2020

by a searcher from Columbia University - Columbia Business School in Princeton, NJ, USA

Self funded searcher with intention to own 100% of the business via SBA (20/80 equity/loan), but looking to deleverage and bring on one or two potential equity investor/partner to raise $500K-$1M so I can execute the business plan with plenty of WC to start. Hope to connect for those interested. Also open to any suggestions on how to raise the additional capital. Target is a small manufacturing business.

Reply by an intermediary
from The University of Chicago in Chicago, IL, USA

WC should be included in your price . Have seen many SFs making this mistake, Also, if you included it, then its gets funded vis SBA, Any incremental WC (e.g. seasonal businesses or peaks( should be funded via a LOC. You may still need some "operating capital" but that is different than WC.

Reply by an investor
from University of Pennsylvania in Washington, DC, USA

Happy to chat - I just gave a talk at Searchfunder on "Tips for Self-Funded Searchers from an Investor" that lays out framework on bringing on investors, some of standard deal terms, etc. DM or redacted

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