Minds Capital Podcast Financing Add-Ons Without New Equity
Dec 10, 2025
Sam Turner, a UK entrepreneur and founder of Advantos, shares his journey from a difficult first acquisition to leading a successful facilities maintenance roll-up. He emphasizes the importance of disciplined capital stacking and shares insights on self-funding add-ons. Sam discusses his transition from organic growth strategies to his upcoming expansion into facilities management. He also candidly reflects on overcoming initial deal failures and underlines his commitment to mentorship, dedicating time to help aspiring business founders.
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Self-Funded Add-On Leverage Model
- Small add-on acquisitions can be financed largely with debt and seller notes, minimizing equity need.
- Sam uses ~2.2x senior debt, ~0.7x seller note, and ~0.7x equity to self-fund roll-ups and compound growth.
Use Surplus Cash First, Then Modest Debt
- Recycle surplus cash plus modest debt and seller financing to fund add-ons and preserve equity.
- Target gross leverage ≤3.0x and net leverage ≤2.0x while using earnouts and seller roll-ins to bridge gaps.
Debt Funds Offer Flexibility At A Price
- SME lenders in the UK offer higher rates but more flexibility than high-street banks, often with five-year, amortizing terms.
- Sam accepted an ~11% fixed deal with bullet repayment and some PIK interest for covenant flexibility.