Micro-Cap B2B Software LBO & Debt Paydown Solver

Underwrite acquiring $1M–$5M ARR sticky mission-critical vertical SaaS, senior debt amortization, customer retention, and 5-year exit equity multiples.

Acquisition Price & Debt Leverage

Target Company Annual Recurring Revenue (ARR $)

Purchase Multiple (e.g. 4.0x ARR)

Senior Term Debt Leverage (% of Purchase Price)

Free Cash Flow (FCF) Margin (% after dev/support)

5-Year Equity Growth & MOIC

Sponsor Upfront Cash Equity Check (35%)

Annual Free Cash Flow for Debt Repayment

$748,000 / yr FCF

Estimated 5-Year Exit Equity Value (At Flat 4.0x ARR)

$8,800,000 (2.86x MOIC / 23.4% IRR)