Independent Sponsor looking for advice on equity raise for ~$3.8M EBITDA acquisition
November 21, 2025
by a professional-accounting from Oxford Brookes University in Karachi, Pakistan
Appreciate any advice/input.
The Deal: I have sourced an established (20+ years), privately held business for sale via an online marketplace.
TTM Adj EBITDA: ~$3.75M
Valuation: Under LOI at ~3.5x
Structure: Buying out majority owners WHILE minority owners retaining equity and staying on in executive roles. I will step in as Cheif Exec/President.
My Background: 20 years as an operator (President/SVP level). I have deep experience and specific talent/customer contacts in this industry.
The Funding Gap: The deal structure includes significant seller financing (highly favorable terms, payment holidays) and seller rollover.
Total Uses: ~$9.5M - $10M
Debt: Confident I can source the senior debt required.
Equity Needed: I am looking to raise ~$1.5M - $2M in outside equity (in addition to my own personal capital injection and seller rollover).
The Issue: I've reached out to some small/niche PE shops, but I am finding this check size is too small to get their interest.
The Returns: I've modeled this over 5 years with conservative growth assumptions. Because of the low entry multiple and deal structure, the projected returns are exceptional (10x+ MOIC).
I believe I'm getting the business at a great price (owners motivated to sell) and it’s a business I know well. I am struggling to find the right pocket of capital for a check size this small.
from The University of North Carolina at Chapel Hill in Philadelphia, PA, USA
from University of Massachusetts at Amherst in New York, NY, USA