Mezz Debt for Roll Up in Lower Market
April 14, 2026
by a searcher from University of Virginia-Darden - Darden School of Business in Charlottesville, VA, USA
We’re currently pursuing a roll-up in a B2C home services niche, with two platforms under LOI (EBITDA ~$500K–$1.2M each).
We’re evaluating capital structures in the ~50–70% leverage range across senior (bank/SBA) and subordinated/mezzanine options.
For those with experience in this size range:
Are deals of this scale typically viable for mezzanine providers?
If so, what portion of the capital stack do they realistically cover (e.g., % of total debt or EV)?
Any structural considerations or minimum thresholds we should be aware of before engaging?
Appreciate any perspective from those who have executed in this lower middle-market band.