How much personal capital is needed to make a transaction happen?
This depends on a number of interrelated factors that together determine how much of your own money a funder will expect you to commit to the deal:
- The funder’s view of the business and its sector
- The amount of capital you have available
- The transaction value
- The amount of capital needed from the funder to enable the purchase
- Whether the seller is willing to retain some equity in the business, post-sale