How It Works
Here is a typical example deal structure for SHV ("80/15/5")
$5M Purchase Price, comprised of the following sources:
💵 $4M SBA(7a) debt @ ~80% leverage
🤝 $500k Seller Financing (Interest rates TBD; term lengths of 2-10+ years, @ 5% of the deal)
💼 $750k Cash Investment from SHV @ 15% of deal = 100% of Purchase Price.
📊 Pro Forma Cap table: Searcher (you!) owns 81%+, SHV (us) owns 19% or less.
🔁 If the seller chooses to roll forward equity in the deal, that could reduce the capital needs, and the Searcher’s ownership proportionately, ie Searcher owns 62%, Seller retains 19%, SHV owns 19% (or less).
Flexible Financing Structures
We play nice, and encourage acquisition entrepreneurs to invest some amount of personal funds into the transaction for alignment, and welcome their friends/family to participate with us if desired. Our typical check size ranges from $250k–$1M per deal, inclusive of all cash needed to close, both for the purchase and working capital.
SHV will always stay below 20% ownership — i.e. below the corporate guarantee threshold for the SBA(7a) loan.
If you'd like to learn more about SHV, or share a deal, please get in touch!
“Be timid and careful when planning, but bold and relentless when acting.“
— Napoleon
