Building enduring businesses through patient capital and employee ownership
Get in touchWe're not flipping and exiting. We're building long-term profitability.
Get your employees to care as much as you do.
Share.
Invest.
Own.
For Life.
Share.
Invest.
Own.
For Life.
Flexible Equity for Self-Funded Searchers
Small Capital provides equity designed specifically for self-funded searchers and entrepreneurs through acquisition, removing barriers created by high debt loads and rigid equity structures.
Align Incentives Through Employee Ownership
Transform your business into an employee-owned company—boosting employee engagement, margins, and long-term stability, without giving up control.
Win Better Deals with Lower Cost Capital
By transitioning equity into employee ownership, your acquisition preserves the seller's legacy, reassures them their team will remain cared for, and distinguishes your offer—helping you win more deals.
advantage:
Transforming small business acquisitions with aligned incentives and employee empowerment
Get in touchWhy
The Small Capital Advantage
We're reimagining small business acquisition financing for operators who want to build, not just buy. Combining patient capital with proven employee ownership structures, we create businesses that outperform the market while building wealth for you and your team.
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5%
higher productivity
Companies that converts to employee ownership see 5% higher productivity in the first year because employees care more.
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9%
higher margins
Employee ownership grows margins as your team learns to think like a business owner and protect the bottom line.
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4X
better employee retention
Employee owned companies have higher morale, worker wealth, and satisfaction, leading to better workers for the long term.
Invest.
Own.
Share.
For Life.
Invest.
Own.
Share.
For Life.
What people say
Work with Small Capital to finance your small business acquisition
Questions
Beyond Traditional Equity: What Searchers Ask About Our Model
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We focus on stable, profitable small businesses with a track record of positive EBITDA and revenue growth, typically with less than $10M in revenue and at least a 10% EBITDA margin. Ideal businesses have an operating history of 10+ years and a workforce with strong tenure, indicating stability and potential for employee ownership.
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While ESOPs are well-known, they're often too expensive and complex for smaller businesses. SmallCapital implements more cost-effective structures like Employee Ownership Trusts (EOTs) that provide similar benefits with lower administrative burden. These structures create immediate profit-sharing for employees and build an ownership culture without the complexity of traditional ESOPs, typically costing 50-75% less to implement and maintain.
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Employee ownership creates stronger alignment between your goals and your workforce, resulting in documented improvements in productivity, retention, and profitability. This translates to better business performance while also reducing your cost of capital through our redemption structure. Additionally, it can help preserve the seller's legacy, often improving your chances of winning competitive deals.
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No, you don’t need a signed LOI to talk with us. We’re happy to help you think through structuring your deal even before you submit an LOI.
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Partnering with an equity investor like Small Capital allows you to lower your overall debt, reduce seller financing, and minimize personal guarantee risks. It provides flexibility to grow your business sustainably, aligning your interests with employee performance and seller legacy—ultimately making your acquisition proposal stronger and more attractive. Here is a helpful podcast on this topic.