Is it possible to retain >50% ownership in a self-funded $10-$12M acquisition?

January 28, 2026

by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA

Hi everyone - the title basically says it all. I have the opportunity to submit an LOI for an off-market deal where TTM EBITDA is around $2M and the going industry multiples are 5-6X. This obviously goes well beyond typical self-funded deal size. I have a $500K of personal equity to contribute and know I need to raise at least another few million of equity to get debt service coverage where it needs to be. A few questions: - Can this be structured such that retain >50% of the equity in this business? Essentially, what kind of "promote" or sweat equity can I anticipate here? - Are there lenders who would provide conventional debt for something this size? Appreciate any advice you can provide, and thanks in advance!

Reply by a searcher
from Massachusetts Institute of Technology in 8555 Sweet Valley Drive, Valley View, OH 44125

Happy to have a call. I was self funded and retained 100% during a similar sized transaction.

Reply by an investor
from Columbia University in Fairfax, VA, USA

Because you're putting in a significant slug of the equity (and likely PG'ing the debt), you can if you use the "Project Cost Method" from an equity structuring standpoint. It's unique (but very common) in the Self-funded Search world. It won't fly in any other type of deal (e.g., Traditional Search) - which almost always uses the "Equity Method". If you're unfamiliar with it, feel free to DM me - happy to walk you through it.

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