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Ep 385 Inside the Mind of an Acquirer with Kevin McArdle: Holding company vs. PE, prepare to be acquired, prevent deterring an acquirer, enhance acquirer talks, counter PE discount tactics, decode valuation metrics

Built to Sell Radio

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How Much Debt Should You Collateralize on a Deal?

So how much debt would you typically use on a deal to execute it? So right now zero, like we're buying in all cash that is committed cash from investors. And then we might layer some debt on the holding company itself just to give more flexibility, better returns. But when we make offers, it's not with X percent of equity and X percent of debt. Because that, you know, I would rather reduce our risk in the near term,. This is my number. You don't have to rely on me raising money from anybody else or convincing a bank to loan me the money.

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