Market Fundraising Terms for Established $2M EBITDA business

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September 05, 2025

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

For a 30+ year old, highly-established $2M EBITDA business, what market terms can I raise from investors? I need to raise around $4M and want to retain as much equity as possible. Would 8%-10% preferred returns be enough to attract investors?
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commentor profile
Reply by a professional
from University of Michigan in Detroit, MI, USA
Hi Anon, I'll let investors chip in with their view. But from my standpoint as a lawyer, I typically see between 8%-12% on the investments I paper. Hope that datapoint helps. Happy to discuss further, if helpful. Reach out at redacted and we can schedule a time to talk.
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Reply by a searcher
from State University of New York (SUNY) in Buffalo, NY, USA
Raising $4mm of equity puts this squarely in independent sponsor territory for economics. You’ll get 20% of proceeds after pref return (8-12%) and capital returned to investors with investors retaining 80% of the upside.
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