Independent Sponsor looking for advice on equity raise for ~$3.8M EBITDA acquisition

professional-accounting profile

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.
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Reply by a searcher
from The University of North Carolina at Chapel Hill in Philadelphia, PA, USA
Have you talked with any of the groups that do both debt and equity? Happy to see if I can be helpful. My email is redacted
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Reply by a lender
from University of Massachusetts at Amherst in New York, NY, USA
Family offices are usually best, or find a private credit provider that has their own family offices relationships and can introduce you and/or help you raise the equity.
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