How to Structure a High Working Capital Deal with Big Potential/ Risk

I'm evaluating a business with strong potential but significant financial challenges over the past three years due to COVID-19. The owner is realistic about the valuation, but the deal requires at least a million dollars in working capital to fully unlock its potential. The company has a solid backlog of orders and improvements, which sets the stage for a successful turnaround.

I'm seeking advice on structuring the deal to retain as much equity as possible while securing investment for the necessary working capital. Specifically, I'm interested in strategies to balance equity and debt to minimize dilution, investor terms that preserve equity (e.g., convertible debt or preferred equity), and the potential benefits of tying funding to performance milestones. Additionally, insights on contingency planning to protect against potential downturns would be invaluable.

This business could be worth several million dollars in the near future, and I’m eager to take advantage of this opportunity. Any feedback would be greatly appreciated!