Funding options for SaaS with ~2M EBITDA

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.
from University of Southampton in Los Angeles, CA, USA
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
from University of Washington in Redmond, WA, USA