What are the best financing structures to minimize personal cash in the deal?
I previously built and sold a software development agency, then ran one of the portfolio companies at the acquiring firm. That venture didn't work out as hoped. Now it's time for me to take the leap into acquiring a business of my own. I'm currently in conversations around three businesses under $500,000. Nothing is under LOI yet. My goal is to acquire my first business within the next three months, and I'll be hands-on throughout the acquisition process. I'm liquid at about $100,000 and want to keep my out-of-pocket to $40,000 or less, ideally $10,000 to $20,000 of my own cash. I'm exploring seller financing with an initial payment deferral and a portion of the purchase price contingent on customer or revenue retention. For those who have acquired businesses at this revenue range, what financing structures have you actually closed with? What's the most practical way to move quickly without overleveraging the business? Have you negotiated deferred seller payments or retention-based price adjustments, and what would you watch out for? Longer term, I'd like to build toward a roll-up, but the first business needs to make sense on its own. I'd welcome guidance and support from people who have bought businesses at this size. What would you do differently on your first acquisition? I'm also open to connecting with investors who consider smaller acquisitions.