Strategies for raising growth capital, understanding debt vs. equity, and navigating the capital markets as a lower middle market business owner.
Business acquisitions in the $1M–$30M range use a blend of financing sources: SBA loans, conventional bank debt, seller financing, mezzanine capital, and private equity. Understanding how each works, when each applies, and how to combine them into the right capital stack is the difference between a deal that builds wealth and one that creates a debt trap.
Private equity firms evaluating lower middle market businesses are looking for five things: recurring revenue, management depth, EBITDA margins, growth potential, and clean financials. Here’s what makes your business PE-ready.
SBA 7(a) loans offer up to $5M with 10-20% down. Conventional financing requires 25-50% equity but moves faster. Here’s how to choose the right acquisition financing for your deal size and situation.
Raising capital in 2026 means navigating more options than ever — SBA loans, angel investors, family offices, PE, revenue-based financing, and SAFE notes. The right choice depends on your stage, growth rate, and how much control you want to keep.
Mezzanine financing bridges the gap between bank loans and equity investment, offering $1M-$15M in growth capital while preserving 90-98% of ownership. Learn how it works, when it makes sense, key terms, and who provides it.
A term sheet defines the economics and control of your capital raise. Learn how to read valuation, liquidation preferences, anti-dilution, board composition, and protective provisions — and what to negotiate before you sign.
A minority recapitalization lets you sell 20-49% of your business while keeping control. Learn how the two bites of the apple strategy works, who the buyers are, what you give up, and whether a partial sale is right for your situation.
SBA 7(a) loans are the most common financing tool for business acquisitions in the $500K-$5M range. Learn how they work, what qualifies, equity injection requirements, seller financing rules, and the common mistakes that stall deals in underwriting.
SBA 7(a) loans are the most common way to finance business acquisitions under $5M. Learn how the capital structure works, what lenders evaluate, the seller note standby requirement, and expected timelines.
Working capital adjustments can swing your effective purchase price by $200K to $2M. Learn how the mechanism works, where disputes happen, and how to protect yourself as a seller in an M&A transaction.