Model for 100% Equity Deals?

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June 17, 2023

by a searcher from Carnegie Mellon University - Tepper School of Business in Cleveland, OH, USA

Curious if anyone has a model for 100% equity (no leverage) deals?

Similar to how Permanent Equity structures their deals. I'd be looking to raise outside equity for a highly attractive deal, but the owner is anti-leverage. I'm still wrapping my head around the mechanics of raising 100% equity while stilll maintaining meaningful ownership. Thanks!

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Reply by a searcher
from KEDGE Business School in London, UK
Interested in this too. ^redacted‌ what might a timeframe look like for something like this? ie how soon might investors be interested in being bought out? Surely there’s not much point if they’re in there for only a year or two?
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Reply by a searcher
in Houston, TX, USA
What you are referring to will be raising an equity fund. To use 100% of equity to fund a single deal does not make sense unless you leverage the company’s assets to raise debt after the acquisition.

I am curious to see others reply on this.
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