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