How to raise capital for a $15M-$20M deal?

searcher profile

September 10, 2025

by a searcher from University of Texas at Austin in Austin, TX, USA

I'm pursing a $2.5M EBITDA deal. The purchase price will end up being in the $18M range including $6M-$7M in real estate. The seller's note will be around 10%. I would like to keep the equity raise in the $4M-$5M range. I am aware that some SBA lenders will do pari passes. Will these lenders go up to $11M-$13M in total loan value? If not, what are some other options that allow me to retain the most equity and avoid IRR hurdles?
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Reply by a searcher
from Harvard University in Streator, Illinois, United States
The real estate is an interesting wrinkle. By doing a sale lease back there you can unlock a large amount of equity for this transaction. Also given the size of EBITDA right now you should be able to find standard bank debt.
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Reply by a searcher
from University of Texas at Austin in Austin, TX, USA
Deals over 4x ebitda (typically >$2mm ebitda) will usually follow an 'independent sponsor' model as opposed to a 'searcher' model. You'll likely use conventional debt as opposed to SBA. I'd look at references (like McGuireWoods’ survey) in the Independent sponsor space to get this one done.
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