Mezz Debt for Roll Up in Lower Market

 profile

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.
1
0
54
Replies
0
Join the discussion