Funding options for SaaS with ~2M EBITDA

searcher profile

March 25, 2025

by a searcher from University of Washington in Redmond, WA, USA

Hello all, I am in different stages of discussions on acquiring 2 businesses. For both these deals, my profile is a strong fit. I am starting to build good rapport with the seller with my last few conversations.

Here is a little about me: I have 20+ yrs of experience in the tech/marketing/SaaS space. Previous roles include Director at Microsoft for 10yrs, Senior Director at Oracle, Head of Growth at Uber. Acquired 2 companies in the past that include a Marketing agency and a SaaS company

Acq 1 - 2M EBITDA acquisition price - 8M - SBA qualified for $5M. SaaS in the e-commerce segment

Acq###-###-#### 9M EBITA acquisition price###-###-#### 7M - SBA qualified for $5M. SMB focused SaaS

For both these acquisitions, I am pre-qualified for $5M. I wanted to structure the deal as SBA with $5M, 10-15% equity, a certain portion as buyer's injection and the rest financed from investors.

Any guidance on the best ways to raise funds from investors? Also, it would be great to hear if there are options other than SBA for deals like these.

0
11
95
Replies
11
commentor profile
Reply by an investor
from University of Southampton in Los Angeles, CA, USA
What do you mean bridge funds, bridge typically implies that its temporary? Your description is a bit unclear too... If i have it right acquisition 1 is $2m in EBITDA and you've negotiated a $8m purchase price. You're planning to use $5m of SBA financing and 10-15% self financed equity (~$1m) so you have a $2m "gap", is that accurate?

You will likely need to raise investor equity to plug that gap, debt to total cap is already at ~65% you're unlikely to get better in conventional markets. Other option is seller note or equity roll from current owner
commentor profile
Reply by a searcher
from University of Washington in Redmond, WA, USA
hey ^redacted‌ - thanks for the reply. I am not pursuing both together. I will focus on only one and to scale it up. There will be a 10-15% seller note on both these deals and the rest of the money has to be raised. I will update the post to reflect those details. Yes, I will be the PG on these deals with majority ownership.‌
commentor profile
+9 more replies.
Join the discussion