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 sometimes seller financing layered in. One bank gives you one product. Capital stacking gives you the right product for each piece.
| Layer | Product | Amount | Rate | Purpose |
|---|---|---|---|---|
| 1 | SBA 7(a) | $1,800,000 | 7.5% | Business purchase + goodwill |
| 2 | Commercial mortgage | $800,000 | 6.5% | Building (if included) |
| 3 | Working capital | $250,000 | 14% | Transition + integration |
| 4 | Equipment financing | $150,000 | 8% | Replace aging equipment |
| Total | Capital stack | $3,000,000 | ~8.2% blended | Full acquisition |
One bank would give you $1.8M and wish you luck on the rest. We structure the full $3M before you make your offer.
Bobby Friel, Basecamp Funding - Founder
Real Scenarios
Acquisitions We've Structured
$8.2M to acquire a competing manufacturer. 3 facilities, $12M revenue. Capital stack: $4.5M SBA 504, $2.2M equipment, $1.5M working capital. 15% down. 22 days. Doubled production capacity.
$1.8M to acquire a multi-location dental group. 4 operatories. SBA 7(a) with 10% down. Seller was 30 days from accepting a corporate offer. We 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. SBA financing structured and closed in 26 days.
$4.2M to acquire a regional carrier. 28 trucks, 2 terminals, $8M annual revenue. Capital stack: $2.5M acquisition loan, $1.2M equipment line (fleet), $500K working capital for integration. 10% down.
$1.5M to buy a 3-location auto repair chain. Owner retiring. SBA 7(a) covered the business value + equipment + 3 months working capital in one loan. 10% down.
$5M to acquire a SaaS company. Existing $3M ARR. Capital stack: $3M SBA 7(a), $1.2M term loan, $800K working capital 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 loan gets harder.
Buyer Experience
Have you run a business before? Industry experience? Is the management team staying post-acquisition? SBA lenders weight this heavily. A first-time buyer with no industry experience is a harder approval than an operator expanding their footprint.
Down Payment
Typically 10% for SBA, 20-25% conventional. On a $2M acquisition, that's $200K with SBA vs $400K-$500K conventional. Seller financing can sometimes cover a portion of the down payment.
Documentation
3+ years of seller financials, your personal financials, a business plan for post-acquisition operations. Incomplete seller documentation is the single biggest reason acquisition financing stalls.
The Numbers
The Real Cost of Acquiring a Business
Here's what acquisition financing actually costs at different sizes. SBA 7(a) at 10% down, 7.5% rate, 10-year term:
| Acquisition Size | Down Payment (10%) | Monthly Payment | Total Interest | Annual Cash Needed |
|---|---|---|---|---|
| $500K | $50,000 | $5,927 | $211,000 | $71,000 |
| $1M | $100,000 | $11,854 | $422,000 | $142,000 |
| $2M | $200,000 | $23,708 | $845,000 | $285,000 |
| $3M | $300,000 | $35,562 | $1,270,000 | $427,000 |
| $5M | $500,000 | $59,270 | $2,110,000 | $711,000 |
Want to model your acquisition? Try the commercial funding calculator to estimate monthly payments and total cost.
Acquisition over $3M or involving real estate + equipment + working capital? Our commercial team builds the full capital stack.
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 business's trailing 3 years, not your projections. If it performed for 3 years under the current owner, the risk of sudden decline is low. SBA loans also offer longer terms which lower monthly payments.
Should I use SBA or conventional?
SBA if you can wait 30-45 days — lowest down payment (10%), lowest rates, longest terms. Conventional if you need to close in under 2 weeks or if the transaction doesn't meet SBA requirements.
The seller wants all cash. Can I still finance it?
Yes. You finance 90% through SBA and bring 10% cash. The seller gets their full price at closing. They don't care where the money comes from.
How much should I pay for the business?
Lenders will 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 loan gets harder to structure.
How fast can acquisition financing close?
SBA: 30-45 days. Conventional: 14-21 days. Capital stack with multiple products: 21-30 days. The limiting factor is usually documentation from the seller, not lender speed.
Is This Right for You?
Who Acquisition Financing Is For
Great Fit
Not the Right Product
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, which rates, which terms, total cost. SBA, conventional, or a capital stack — whatever fits the acquisition best. You review, ask questions, and decide.
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.
Start Your Application →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 acquisition financing works when you do it right. SBA 7(a) is the workhorse of acquisition financing — 10% down, long terms, competitive rates. But plenty of acquisitions need more than SBA can cover on its own.
That's where capital stacking comes in. An SBA loan for the business itself, a commercial mortgage for the real estate, equipment financing for the machinery, and working capital for the transition — each product from the lender who does it best. Your blended rate is lower than any single lender could offer, and you fund the entire acquisition in one coordinated process.
Basecamp Funding works with 70+ lending partners to structure acquisition financing from $500K to $10M+. Whether you're buying a competitor, acquiring a medical practice, rolling up auto repair shops, or acquiring a manufacturing operation — 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 →