Capital Stacking for Acquisitions
Why Acquisitions Need More Than One Lender
Most acquisitions involve multiple components: the business itself, the real estate (if owned), the equipment, working capital for transition, and accounts receivable to bridge cash flow. One bank gives you one product against one collateral source. Capital stacking gives you the right product for each piece — and your existing business's revenue is what makes the whole structure underwrite.
| Layer | Product | Amount | Typical Structure | Purpose |
|---|---|---|---|---|
| 1 | Commercial real estate | $1,800,000 | 20-25 year amortization | Building + land |
| 2 | Equipment financing | $600,000 | Asset-backed, 3-7 years | Machinery + vehicles |
| 3 | Term loan | $400,000 | 3-10 year term, revenue-based | Goodwill + inventory |
| 4 | Working capital | $150,000 | 6-24 month term | Transition + integration |
| 5 | Accounts receivable | $50,000 | Revolving, advance on invoices | Cash flow bridge |
| Total | Capital stack | $3,000,000 | Multi-product blend | Full acquisition |
Rates, terms, and monthly payments depend on credit, revenue, time in business, and lender. Every business is unique — see what 70+ lenders will offer you in 60 seconds. Soft-pull pre-qual.
One bank gives you one product against one collateral source. We stack the right product against every collateral source — your revenue, the target's equipment, the building, the receivables. That's how acquisitions actually fund at $5M and up.
Bobby Friel
Founder, Basecamp Funding
$4M Acquisition Scenario
Buying a $4M business? Real estate loan on the building, equipment financing for the machinery, working capital for operations, term loan for the goodwill portion. Three to four lenders, one specialist coordinating, one close.
$12M Mid-Market Scenario
Mid-market acquisition at $12M? Real estate loan covers the property, working capital plus line of credit plus accounts receivable financing fund the operating capital, term loan covers the goodwill and inventory. Five lender lines, one structured close — typically 21-30 days from full file to funded.
Real Scenarios
Acquisitions We've Structured
$8.2M to acquire a competing manufacturer. 3 facilities, $12M revenue. Capital stack: $4.5M commercial real estate, $2.2M equipment financing, $1.5M working capital. 22 days. Doubled production capacity.
$1.8M to acquire a multi-location dental group. 4 operatories. Term loan plus equipment financing against revenue. Seller was 30 days from accepting a corporate offer. Closed in 26 days and beat the corporate buyer.
$2.4M to acquire a competing 3-unit seafood concept. Seller was 30 days from signing with another buyer. Stack: term loan for goodwill, equipment financing for kitchens, working capital for transition. Closed in 26 days.
$4.2M to acquire a regional carrier. 28 trucks, 2 terminals, $8M annual revenue. Capital stack: $2.5M term loan against revenue, $1.2M equipment line (fleet), $500K working capital for integration.
$1.5M to buy a 3-location auto repair chain. Owner retiring. Stack covered business value, equipment, and 3 months working capital across three coordinated lenders. Closed in 24 days.
$5M to acquire a SaaS company. Existing $3M ARR. Capital stack: $3M revenue-based term loan, $1.2M working capital, $800K accounts receivable line for integration and sales hiring.
We were 12 days from losing the transaction. Our bank couldn't move fast enough — they wanted 60 days for a $2M acquisition loan. Basecamp structured it across two lenders in 18 days. 10% down. We own the business now.
CFO, Manufacturing Company
Get Started
Start Your Acquisition Financing (30 Seconds)
Tell us about the business you're acquiring. After submitting, you'll complete a short application — takes about 2 minutes. Your dedicated acquisition specialist reviews both and presents a structured financing package.
No obligation. Your information is kept confidential.
What Lenders Evaluate
The Acquisition Financing Pecking Order
Lenders evaluate acquisition loans differently than standard business loans. Here's what matters most, in order:
Affordability
Can the TARGET business's cash flow service the acquisition debt? Lenders look at the business you're BUYING, not just your existing business. DSCR of 1.25x minimum on the target's trailing financials.
Business Valuation
How is the business priced? Revenue multiple, EBITDA multiple, asset value. Most small businesses sell for 2-4x annual cash flow. If the seller wants 6x, lenders will flag the overpayment risk and the structure gets harder.
Buyer Experience
Have you run a business before? Industry experience? Is the management team staying post-acquisition? Lenders weight this heavily — an operator expanding their footprint is a stronger file than a first-time buyer with no industry experience.
Collateral Mix in the Target
What's already inside the business — real estate, equipment, receivables, inventory? Each tangible collateral source supports a different lender in the stack, which lowers blended cost and reduces what comes out of your pocket. A target with real estate plus equipment funds very differently than a pure goodwill purchase.
Documentation
Three or more years of seller financials, your personal financials, a one-page summary of post-acquisition operations. Incomplete seller documentation is the single biggest reason acquisition financing stalls.
The Numbers
How Acquisitions Get Structured at Each Size
Acquisition financing scales by what's inside the target business. Revenue-based stacks pull from operations, hard collateral (equipment, real estate, receivables), and your existing business's cash flow. Out-of-pocket varies — strong tangible collateral and clean financials can reduce personal cash to a fraction of traditional down-payment models.
| Acquisition Size | Typical Stack Components | Typical Close |
|---|---|---|
| $500K – $1M | Term loan + working capital + equipment line | 21 days |
| $1M – $3M | Term loan + equipment + working capital + A/R line | 21-28 days |
| $3M – $5M | + Real estate loan if building included; multi-lender coordination | 25-30 days |
| $5M – $10M | Full five-layer stack: real estate, equipment, term, working capital, A/R | 30 days |
| $10M – $20M+ | Middle-market stack, custom-structured per deal across 5-7 lender lines | 30 days+ |
Rates, terms, monthly payments, and out-of-pocket depend on credit, revenue, time in business, target collateral, and lender. Every acquisition is unique — see what 70+ lenders will structure for you in 60 seconds. Soft-pull pre-qual.
Want to model your acquisition? Try the commercial funding calculator to estimate monthly payments and total cost.
Acquisition at $5M or above with real estate, equipment, and operations to fund? Our commercial team builds the full middle-market capital stack across five to seven lender lines.
Structure Your Acquisition →Common Concerns
Every Acquisition Objection Answered
Can I afford the payments?
The acquisition target's cash flow should cover the debt service. If the business makes $800K/year in net income and the annual payment is $285K — that's a 2.8x DSCR. Strong.
What if the business underperforms after I buy it?
Lenders evaluate the target's trailing three years, not your projections. If it performed for three years under the current owner, the risk of sudden decline is low. Stacking long-term real estate and equipment financing against shorter working capital also lowers your blended monthly payment.
Why stack lenders instead of going to one bank?
One bank gives you one product. A capital stack puts the right product against the right collateral — real estate financing on the building, equipment financing on the machinery, revenue-based term financing on goodwill. Your blended rate ends up lower, and your structure isn't capped by one underwriter's appetite.
The seller wants all cash. Can I still finance it?
Yes. The seller is paid in full at close — they don't care where the money comes from. Your stack funds the full purchase price across multiple lenders; the seller wires out at one closing table.
How much should I pay for the business?
Lenders evaluate the asking price against standard multiples. Most small businesses sell for 2-4x annual cash flow (SDE or EBITDA). If the seller wants 6x, lenders will flag it and the structure gets harder.
How fast can a structured acquisition close?
21 to 30 days for a full capital stack from documented file to funded. The limiting factor is usually seller documentation, not lender turn time. Your specialist coordinates every lender line in parallel.
Is This Right for You?
Who Acquisition Financing Is For
✅ Good Fit If…
Consider Something Else If…
Where Acquisitions Are Booming
Industries Where Acquisitions Are Booming
Our Process
How Acquisition Financing Works With Basecamp
Tell Us About the Acquisition (30 Seconds)
Use the form on this page. Target business, asking price, industry, timeline. That's it.
Complete Your Application (2 Minutes)
After submitting, you'll complete a short application that tells your story: revenue, goals, acquisition rationale. This is what our acquisition team uses to structure your financing.
Your Specialist Is Assigned
A dedicated acquisition specialist reviews your application and begins structuring financing across the right lenders. They present your best options directly — no runaround.
Your Financing Package Is Presented
Your specialist presents the full structure: which products in the stack, which lenders, which rates, which terms, blended cost. You review, ask questions, and decide before committing to anything.
Close and Fund
Sign documents digitally. Your specialist manages every lender through closing. Funds wire to escrow or directly to the seller. Typical timeline: 30 days or less.
Total time investment from you: under 3 minutes. Everything else is handled by your dedicated acquisition specialist from start to funded.
Ready to Start?
You've seen the scenarios. You've seen the numbers. If you're ready to finance an acquisition, the next step takes 30 seconds.
See What You Pre-Qualify For →Not Ready Yet? Run Your Numbers First.
Estimate monthly payments, total cost, and debt service for your acquisition.
Try the Calculator →FAQs
Business Acquisition Financing FAQs
Look — buying a business is the fastest way to skip the startup phase entirely. You're acquiring revenue, customers, employees, and cash flow on day one. But most business buyers go to one bank, get one offer, and accept whatever they're given. That's not how acquisitions get structured at $1M, $5M, or $20M when you do it right.
The structure is capital stacking: revenue-based term financing for goodwill, commercial real estate for the building, equipment financing for machinery, working capital for the transition, and an accounts receivable line for cash flow. Each product comes from the lender who does it best. Your blended rate ends up lower than any single lender could offer, and the entire acquisition funds in one coordinated process.
Basecamp Funding works with 70+ lending partners to structure revenue-based acquisition financing from $500K to $20M+. Whether you're buying a competitor, acquiring a medical practice in Minnesota, rolling up auto repair shops across Missouri, or acquiring a manufacturing operation in Indiana — one application, one specialist, and a financing package structured before you make your offer. Use the commercial funding calculator to model the numbers, or fill out the form above and talk to a specialist today.
Buy the Business. Keep 100% of It.
Free review. No obligation. Confidential. One application — 70+ lenders competing on your acquisition financing.
Talk to an Acquisition Specialist →