Finding Investors

Finding the right investor for your acquisition financing can be like rolling a boulder up a hill. It is a heavy lift and you can never quite get the momentum to reach the top. This is the reality of attracting acquisition financing. Most mezzanine lenders and private equity investors are very selective about what deals they pursue. Most firms will only close about 1-2% of all the deals they screen. That means to get funded, you have to approach 50 to 100 investors. The reality of the numbers is even more daunting given how regionally scattered these firms are. The proverbial "needle in the haystack" is a way to look at it. There are several thousand firms located across the US with no specific regional concentration. Each firm is further defined by a number of parameters including:

• Deal size
• Industry focus
• Type of capital
• Type of deal

In all there are about eight categories of acquisition financiers. To get funded, you have to approach 50 to 100 of the right type of investors. First however, you must be able to aggregate like kind firms for your type of deal. Assuming eight different categories, expect to approach 400 to 800 investors to net 50 to 100 of the like kind acquisition financiers. This is very difficult to achieve. This is the single biggest reason why companies need to work well connected advisors with an established portfolio of relationships. Attract Capital is well known in the industry and has hundreds of relationships with acquisition financiers. Having spent many years in this industry, we have a wide reach and know how to target and engage the right firms. Once focused on a deal, we quickly reach large numbers of targeted investors for our clients.