How to bring a private investor into your first deal

Happy Tuesday!

Today, I’m getting into the nitty-gritty on how to actually find and bring on a private investor for your first acquisition.

SBA loans that cover up to 90% of a purchase price can make business ownership far more attainable.

But it still leaves you with a down payment to cover, and for many first-time buyers, that’s where private investors come in.

Here’s how to find your next private investor. 👇

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First, understand what makes investors say yes

Before anything else: strong deals attract strong investors.

If the opportunity isn’t genuinely compelling, no amount of networking or pitching will save it.

Your job is to find a deal good enough that bringing in a capital partner is an easy conversation, not a hard sell.

Step 1: Build a detailed business plan

Before you approach anyone, you need to be able to clearly articulate:

• What you’re buying

• How you plan to run it

• What changes you’ll make to grow revenue

• And - most importantly - exactly what the investor gets out of it.

Vague pitches don’t close investors.

Step 2: Assemble a credible team

Sophisticated investors want to see that you’re not going into this alone.

Look for two key people on LinkedIn or through your existing network:

1. An accountant familiar with small business acquisitions

2. And someone with direct experience in the industry you’re buying into

Bring them in early, have them support your due diligence, and offer a small equity stake - around 2.5% each - in exchange for their involvement.

This adds instant credibility to your deal.

Step 3: Get the deal under contract first

You’ll have a much stronger position with investors once you have a signed LOI in hand.

At that point, you know your numbers:

• The purchase price

• The down payment required

• And how much equity you’re willing to offer in exchange for that capital

For example: a $2M business with a $200K down payment might mean offering an investor 15% equity in exchange for covering that amount.

(Inside Acquisition Ace, members get guidance on structuring deals like this, including how to bring investors in without giving away too much equity. To learn how, and see if our community’s a good fit, book a call with our team here.)

Step 4: Go find your investor

Start with your existing network before going anywhere else.

Former colleagues, friends, family, or professional contacts who have capital sitting in low-yield accounts and would love a better return.

Then expand outward through LinkedIn, investing communities, and entrepreneurship groups online.

Step 5: Make the value proposition crystal clear

Walk them through the math in plain language.

Using the example above: they put in $200K for 15% equity in a business generating $600K in annual cash flow.

Their annual return on that investment? $90K - a 45% cash-on-cash return, completely passively.

Most investors aren’t going to find, underwrite, and close a deal like this on their own (that’s the work you’re doing).

They’re simply providing capital and collecting the upside, which is a compelling offer, and for the right investor, an easy yes.

If you want to learn more about attracting, pitching, and closing partnerships with private investors…

Join the Acquisition Ace community, where we help thousands of members go through the process of acquiring their first business.

To join 2,000+ other members learning about and succeeding in business acquisitions…

👉 Book a call with my team here to see if it's a good fit.