What are typical terms for an equity investor for a self-directed deal?

by a searcher from University of Virginia-Darden - Darden School of Business

2 years ago

I am a self-directed searcher looking to acquire a business to hold for the long term.  An equity raise would be part of the deal and I'm curious what terms for an investor might look like for a deal like this. 

Happy to connect with any potential investors as well.

9 likes
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11 comments

searcher from Columbia University - Columbia Business School

I think something that pencils to 30% IRR, is not a business where the entrepreneur needs specialized knowledge they don't have, and has easy growth changes (implementing CRM, adding digital marketing, etc.)

8 months ago | like reply | 0 likes

searcher from London Business School

Investors get pref shares plus enough ordinary equity to provide a 25-30% IRR in a relatively conservative base case

2 years ago | like reply | 0 likes

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