Raise capital without giving up the company.
Selling is not the only way to get liquidity. A recapitalization, a minority investment or an acquisition line can put real money in your pocket and fuel the next stage of growth while you keep a stake in what comes next.
Most owners who call about capital are in one of these situations.
Four ways to take money off the table without selling everything.
Each one costs something different. The cheapest capital on paper is often the most expensive in control, and the most expensive money sometimes buys the partner you actually need.
Most owners end up in a blend. What matters is deciding the goal first, then choosing the instrument, never the other way around.
What raising capital actually involves.
The work looks a lot like a sale process, because it is one, just for a piece instead of the whole. Same materials, same diligence, same need for competition among funders.
A fundable story
Investors underwrite growth. We build the plan, the model and the materials that make the next five years credible rather than optimistic.
The right capital, not the first capital
Minority equity, a recapitalization, mezzanine debt or a senior facility all cost different things. We map which structure fits your goal before anyone is approached.
Competition among funders
Approaching one investor gets you their terms. Approaching several gets you a market, on valuation, on control provisions and on cost.
Control terms negotiated
Board seats, consent rights, drag-along, redemption. The governance terms decide how much company you actually still run afterwards.
We have sat on the side of the table writing the check.
Kemp ran M&A for Middleton Lawn & Pest Control, Rollins (Orkin’s parent company) and Scotts Lawn Service. He has underwritten these deals from the investor’s chair, which is exactly why he knows how your numbers will read on the other side of it.
When you raise capital, you are hiring a partner with governance rights and a clock. We make sure you know what you are agreeing to before you sign it.
A recap is a partial exit. Price it like one.
The valuation you accept for a minority stake sets the reference point for everything that follows, including your eventual full exit. Start with an honest number.
The terms that matter more than the valuation.
A high headline number with the wrong governance package can leave you working for someone else inside your own company. These are the clauses we negotiate hardest.
Who has seats, who breaks ties, and what needs board approval at all.
The list of decisions you can no longer make alone, from hiring to capex to acquisitions.
When your partner sells, you sell, on their timing and their terms. Know the threshold.
Who gets paid first, and how much, before your retained stake sees a dollar.
A clock that can force the company to buy the investor out, whether or not it is a good moment.
Monthly packages, budget approvals and ratios you have to hold. Real work, and real risk if missed.
Questions owners ask about capital.
You sell a portion of your company, often a majority or large minority, take significant cash now, and roll the rest of your ownership into the new structure. The retained piece is sometimes called a second bite, and it can be worth more than the first if the business grows.
Yes, and it is one of the most common reasons pest and lawn owners call. A capital partner who has funded consolidation before brings a playbook as well as the money.
No. We do not represent buyers or run acquisition searches. We can help you finance growth, but the acquisition advisory itself is outside what we do.
You keep operating the business and you keep upside. What changes is that you now have a partner with governance rights, reporting expectations and a timeline of their own. That trade has to be worth it.
Not automatically. A minority investment usually leaves you running the business, while a recapitalization normally transfers operating control. What decides it is the governance package, not the percentage on the cap table.
It is driven by adjusted EBITDA, the quality of your recurring revenue and how much of the business runs without you. The honest starting point is a valuation, not a target number.
Subordinated debt that sits between your bank loan and your equity. It costs more than senior debt and often carries a small equity kicker, but it lets you fund growth without selling a stake.
Three to five months is typical from the first conversation to funding, assuming financials are in order. Cleaning up the books first is what keeps that timeline honest.
More than anything else. Renewal agreements, retention and route density are the metrics that get a home service company underwritten as a platform instead of a job.