CapitalPad supports acquisitions of established, profitable small and medium-sized businesses using the self-funded searcher or independent sponsor model.

Deals must generally be under LOI and supported by strong historical profitability and a clear path to close.

We are industry-agnostic but highly favor durable, “boring businesses.” We are typically more cautious on ecommerce or tech-related industries that are more prone to disruption.

Representative examples include:

• Residential Home Services – Plumbing, landscaping, pool care
• Consumer Services – Auto repair, pet grooming
• Medical & Wellness – Mental health services, outpatient clinics
• Niche Manufacturing – Custom fabrication, specialty producers
• Digital Services – IT providers, digital marketing agencies
• Business Services – HR consultancies, accounting firms

Business Requirements:

Companies raising on CapitalPad must have at least $500,000 in EBITDA/SDE, with a preference for significantly more.

Raising capital on CapitalPad is always free for sponsors.

Investors pay a one-time 1.5% management fee to help cover costs, then CapitalPad only earns via carried interest from investors, and only after investors are profitable, keeping incentives aligned.

Our network includes approved accredited individuals, family offices, funds, and SBICs with experience in sponsor-led acquisitions.

Once approved, a blinded teaser of your deal is shared inside CapitalPad’s curated investor network through our secure platform.

Investors who express interest must sign an NDA and non-circumvention agreement before accessing the full deal materials and data room.

Those who do not sign remain limited to the teaser only.

Yes. Investors only see a blinded teaser until they sign an NDA and non-circumvention agreement inside the secure platform.

Without those agreements in place, they cannot access the full deal materials or data room.

Sponsors should be prepared to provide:

• Accepted LOI
• Deal memo
• Company overview and investment merits
• Financial package (P&L, tax returns, statements)
• Financial model
• Sources & uses of funds
• Investor terms (preferred return, IRR, step-up)
• Terms of the acquisition
• Status of debt financing
• Post-close growth / value creation plan

Our team typically reviews submissions within 2-3 business days. You’ll receive clear feedback on next steps or approval to move forward.

Timelines vary depending on deal type, size, and investor demand.

As a rule of thumb, the more time you allow, the more capital can be raised, so it’s best to start early.

Some deals have been funded in as little as 14 days, but larger allocations almost always require additional time.

Reach out on your deal if you have a specific need, and we can give feedback.l 

CapitalPad can directly support investments from $250,000 to $1,500,000.

Larger raises may be filled through a combination of our network and institutional partners, as CapitalPad can introduce larger independent sponsors to dedicated debt and equity capital providers to fill out equity gaps.

Larger institutional partners are required to allocate at least $750,000 or more to be on our approved list.

No. CapitalPad focuses exclusively on equity investments.

However, we maintain relationships with both SBA lenders for searcher deals and traditional debt providers for independent sponsor transactions.

Contact us if you’d like an introduction.

Investors expect market-standard economics that balance sponsor incentives with investor protections.

Common structure for self-funded searchers:

• 8-15% preferred return
• 1x liquidation preference
• 1.5x – 2.5x step up
• A conservative model with projected 30%+ IRR returns for investors
• Quarterly distributions are preferred (and raise more), but are not required
• Investors also prefer accelerated return of capital, although not required

Common structure for independent sponsors:

• A 1-2% closing fee, generally rolled into the deal
• Management fee, usually up to 5% of trailing 12-month EBITDA (with a floor and ceiling)
• A scaling carried interest structure, with standard MOIC hurdles
• A 6-10% preferred return hurdle
• CapitalPad generally wants to see a 30%+ IRR modeled on very moderate growth

Independent sponsor deals should largely be in line with the McGuireWoods Independent Sponsor Study

All allocations from CapitalPad investors are consolidated into a single SPV (special purpose vehicle).

This means the SPV invests directly into your deal, and you only send subscription agreements and wire requests to the SPV manager (CapitalPad). Sponsors avoid the complexity of managing dozens of individual investors.

For larger institutional commitments ($750k+), investors typically invest directly rather than through the SPV.

If SBA loan verification documents are required, CapitalPad collects and organizes them on your behalf.

Yes. While CapitalPad primarily supports post-LOI raises, we can connect qualified searchers and sponsors with vetted proprietary deal flow.

Beyond capital, CapitalPad stays engaged post-close. We provide hands-on support to help sponsors grow and scale their new companies.

This can include vetting service providers, leading website redesigns, scaling marketing efforts, or offering strategic guidance. When needed, we’re willing to roll up our sleeves and get involved.