EQUITY STRUCTURES BEYOND THE $5MM SBA CAP?

Working on a couple of opportunities that will get us close to the $5MM SBA lending limit and curious about structures that include more equity/commercial debt. Previous deals have been 10% equity, 10% seller debt, 80% SBA debt.

We are primarily targeting smaller deals ($500k-2MM EBITDA) with multiples in the 2.5 to 3x range. (We had one PE firm say they would write a check for the entirety of one deal and let us run it, but am leery of giving up control and not taking advantage of some element of leveraged bank debt.)

Structures, equity terms, etc would be appreciated. I know this primarily comes down to what you can sell investors on, collateral when it comes to bank terms, etc., but curious about other recent experiences.

Thanks in advance.



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