Searcher Wanted to Partner on $2M EBITDA Waterscaping Business

This Week in ETA:

Searchers: We are working with a strong searcher acquiring a New Jersey wetscaping company (think: sprinkler systems) who is looking for a partner to own and operate with. The company is $2M EBITDA and is being purchased at 4.6X multiple. We plan to provide equity, pending due diligence, and would like to find a great partner for this searcher. The partner would need to be based in New Jersey and comfortable accepting a personal guarantee on the SBA loan. Interested? Please fill out this short survey.

Investors: We're seeing some deals where the only way to get them done is through 50-70% equity + seller financing. I wrote about this on LinkedIn and received great discussion in the comments. Personally, I like having a mix of these lower-leverage deals alongside our larger transactions that use conventional loans. It lets us move faster, make distributions sooner, and compete where leveraging debt doesn’t make sense. In a market that still assumes debt is mandatory, that’s a useful edge.

Partner Perspective:

Matthias Smith, Pioneer Capital Advisory: Why Post-Close Liquidity Matters in SBA Acquisitions

Post-close liquidity is one of the most common friction points I see in SBA-backed acquisitions. Not because the business is weak, but because the buyer shows up at closing with very little margin for error. Banks aren’t just underwriting historical cash flow. They’re underwriting your ability to absorb timing gaps, fund working capital, and handle the inevitable surprises that show up during a transition. Cash after close isn’t idle capital — it’s operational insurance.

Buyers need to model ownership from day one, and not just focus on getting a deal across the finish line. Two buyers can acquire the same business with the same loan, but the one who preserves real liquidity walks in more confident, more credible, and better positioned to operate instead of react.

Buyers who plan ahead can structure deals more intelligently, evaluate financing options realistically, and avoid surprises late in underwriting. They also tend to move faster once under LOI because there are fewer unanswered questions around capitalization. I break this down further here.

Thinking through liquidity early allows you to structure the deal more intelligently, evaluate financing options realistically, and avoid surprises late in the process. It also improves your credibility with lenders and speeds up execution once you are under LOI because there are fewer unanswered questions around capitalization. If you want help structuring financing that supports stable ownership, not just closing, reach out to my team. 

Plus:

• Our friends at Deal Prospectors guest authored a comprehensive article on where to find business owners thinking about selling. If you’re pursuing an off-market search, make sure you read the whole thing - there are some creative and low-tech ideas (Facebook Groups, Reddit Threads, Chamber of Commerce, etc.) that you may not be utilizing.

• Great insight from Albrecht Law on why they strongly recommend that seller transition services be listed in the purchase agreement as a covenant (in addition to further assurances).

Question:

Hit reply and tell us - Have you successfully used any additional off-market searching tactics not mentioned in the Deal Prospectors article?

P.S. - Share Your Buy Box:

If you’re a searcher, let us know your buy box! We see a lot of proprietary deals and love to bring right-fit searchers in on them.