How much equity is the sponsor group investing in the deal?

■ This is a tough question to answer, particularly if your group has a limited amount of capital to invest in the venture or has elected not to invest its own funds in the deal. But remember, a primary goal of finance is to use other people’s money to make money for you and your company.

■ If your group is able and willing to provide 5% to 10% of the equity required, the outside equity investor will usually be comfortable. You now have, as they say, skin in the deal.