Most SBA acquisitions don't need equity investors. But larger deals, multi-unit acquisitions, and deals above the SBA ceiling require a capital stack. Here's how to identify, pitch, and close equity partners for your acquisition.
Before you start raising equity, know what you're giving up. Every dollar of equity is ownership you're sharing.
| Deal Size | Financing Path | Equity Needed? |
|---|---|---|
| Under $5M | SBA 7(a) — 10-20% down from personal savings | Usually no |
| $5M-$10M | SBA + personal capital + possible seller note | Maybe — depends on your liquidity |
| $10M-$25M | Commercial lending + equity co-investors | Yes — you need LP capital |
| $25M+ | Family office or PE partnership | Yes — institutional capital required |
Your first call. People who know you, trust you, and want to participate in your deal. Typical check sizes: $25K-$250K. Keep it clean: formal operating agreement, quarterly updates, clear terms on distributions and exit. Never do a handshake deal with family. The legal structure protects the relationship.
"I'm acquiring a [business type] for [$X]. I'm putting up [$Y] of my own money and raising [$Z] from investors I trust. The business generates [$EBITDA] annually. Your investment earns [8-12%] preferred return and we split profits [70/30] after that. Here's the operating agreement for your attorney to review."
Other acquisition entrepreneurs who want deal exposure without running the company. They invest capital, provide operational advice, and share risk. Typical check sizes: $100K-$1M. They understand the deal because they've done deals themselves. Find them in communities like Gravy Wealth, Searchfunder, ETA networks.
For deals above $10M where you need $2M+ in equity. Family offices are the sweet spot — they move faster than PE firms, have fewer reporting requirements, and are often willing to back first-time operators with relevant industry experience. PE firms bring more structure, more resources, and more control expectations.
Mario Antwine's path: self-funded search, too large for SBA, engaged family offices and commercial lenders, found strategic partners with industry experience who added value beyond capital.
Accredited investors in the Gravy Wealth community can deploy capital alongside acquisition entrepreneurs. Whether you're raising equity for a deal or looking to invest passively alongside an operator, the network connects both sides.
Accredited investors: deploy capital into vetted SMB acquisitions led by Gravy Wealth members
Have a deal under LOI? Share your teaser with accredited investors in the Gravy Wealth community
Operating agreements, investor terms, equity structures, and closing documentation
Book a 1:1 with Mario Antwine to walk through investor sourcing, deal structuring, and partner selection for larger acquisitions.
Have a deal and need capital? Text the Gravy Agent →