Most challenging aspect of ETA in today's environment?

April 30, 2025

by a searcher from Michigan State University in Grand Rapids, MI, USA

For the past few years, finding the right business for the right price has been the biggest headache in this LMM and ETA space. For SBA buyers, this still holds true but raising capital is now the new headache. With the changes starting June 1st, curious on how this community is feeling about fundraising?

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Reply by a searcher
from University of Virginia in Simi Valley, CA, USA

Overall, I expect many positive developments. Tighter capital requirements will push out unqualified buyers from the market. Economic instability will expose many businesses with structural issues, making sellers more realistic and accepting of lower valuations. And unprofessional brokers will be forced to find other jobs, making the brokerage industry more professional. It's all good.

Reply by a professional
from Villanova University in West Chester, PA, USA

Hi ^redacted‌, we’re hearing the same from many clients - while finding the right deal remains challenging, capital raising has become a key area of focus, especially with the SBA rule changes going into effect. Some clients are trying to push through before the clients. Others are exploring other flexible fundraising structures such as debt instead of equity (which you can creatively structure similarly to equity) to align interests and navigate the current environment. Terms in investor agreements - particularly around governance, economic rights, and exit terms - are being discussed in light of this. We’d be happy to share what we’re seeing in live deals. Feel free to schedule a consultation call with us to speak more or check out our other resources, including our podcast, acquisition insights course, and soon releasing book, at deanstreetlaw.com/links

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