Nova anticipates some mix of the following sources of capital and negotiations are currently ongoing with institutional investors, private investors, and banks to establish a means to these funds once an acquisition is identified.
- Investor Capital (subordinated debt and equity), 25-30% of total purchase price
- Bank Debt (senior term loans and revolving line of credit), percentage to be determined depending on company characteristics and general banking climate; expected to be 40%-60% of total purchase price
- Seller Financing
(seller note and non-compete agreement), percentage to be determined;
generally balance remaining after above sources are exhausted