Buying Small, Solo or Investors? (Canada)

March 20, 2026

by a searcher from University of Waterloo in Toronto, ON, Canada

Hi everyone, I’m currently running a self funded search and am curious to hear from those to have bought or invested in $300k-$1.5M EBITDA or $1.5-5M EV businesses. One of the reasons I’m doing the self funded approach is to avoid the increasingly competitive market that traditional searchers and lower market PE/holdco structures are targeting while maintaining better ownership economics. My thesis is to acquire small, where the opportunity for outsized impact is large and near term, and where I can install systems to transform an owner-operated business into something scalable. I’m targeting businesses that can deliver strong returns at steady state with an opportunity for outsized returns from top line growth and eventually platform building through M&A or greenfield expansion. With that said, while I could possibly fund an acquisition in my own if I push hard on terms, I believe having 1-2 investors would make the journey much smoother. Am I falling into angel category here? Welcome thoughts from others who have acquired something small or those who have invested as well.

Reply by a searcher
from Howard Payne University in Austin, TX, USA

Hi Helen, I'm searching in the same EBITDA range as you, and Josh is right that you tend to find misleading financials and weak businesses. But in my last role doing M&A tuck-ins, we found several that were $300-$800K EBITDA, well-run, with clean books and strong fundamentals. It's helped me know what to look for and when to pass. Happy to chat about my experience so far.

Reply by a searcher
from University of New Brunswick in Toronto, ON, Canada

Hi ^redacted‌, in my experience having investors (especially with operational experience) reduces your downside risk in ways that self-funding alone cannot. So if done right, it adds to have investors. On the deal size, generally the work required to run a $300K-$1.5M EBITDA is similar as $2M–$3M EBITDA company. Moreover, a larger deal with the right assets actually de-risks your search as higher EBITDA means more financial cushion for management hires, operational surprises, etc. Operational fragility at smaller deals means self-funding leaves you exposed when the inevitable surprises hit post-closing. The competition at larger size is real, but a searcher with credibility and speed can still win on terms and relationship. I would say that an investment thesis leaning towards buying a bigger company is more preferable. I am always happy to chat. Please feel free to DM or email me at redacted

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