Jonathan Bates
Partner, Patriot Growth Capital
Jonathan Bates served as a Navy Explosive Ordnance Disposal (EOD) officer — a role that demands pattern recognition under lethal pressure, total procedural discipline, and decisive leadership when the margin for error is zero. Those instincts translate directly to acquisition due diligence, integration planning, and the high-accountability environment of running a lower-middle-market company. He writes on leadership frameworks, acquisition criteria, and what it takes to actually operate a business you own.
Areas of Expertise
Articles by Jonathan Bates
Quality of earnings in private equity acquisitions
June 15, 2026
A quality of earnings report stress-tests EBITDA before a deal closes. Here is what PE buyers examine, what it costs, and how findings affect price.
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Search fund valuation: what the numbers show
June 14, 2026
How search funds value acquisition targets. EBITDA multiples, QoE adjustments, earnout structures, and what the Stanford 2024 Study data shows.
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Asset sale vs stock sale: what the structure costs you
June 12, 2026
Buyers push for asset sales. Sellers prefer stock sales. On a $10M deal, the structure choice can cost you $1.1M or more in after-tax proceeds.
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Search fund first 100 days: what operators get wrong
June 11, 2026
Most operators spend 24 months finding a deal. Day one, they discover evaluation is nothing like operation. Here is the sequence that works.
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Family business succession: the planning gap
June 10, 2026
Only 30% of family businesses survive to a second generation. Here is why most succession plans fail — and what the best exits look like.
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Search fund deal sourcing: how searchers find targets
June 9, 2026
How search fund operators build deal flow: direct outreach, broker relationships, and the sourcing process that finds acquisition targets.
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Search fund closing: what happens after the LOI
June 8, 2026
After the LOI, a search fund operator has 60-90 days to close the deal. Here's what happens at each stage, what kills deals, and what gets you to Day One.
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Private equity recapitalization: the partial exit
June 7, 2026
Most owners don't know the minority recap option. PE buys 20-40%, you keep control and get liquidity. Here's how LMM recaps work.
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Search fund letter of intent: what the LOI locks in
June 5, 2026
The LOI is where most search fund deals are won or lost. Here's what it covers, what Stanford data shows, and the three mistakes operators make.
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Private equity preferred return: the 8% standard
June 4, 2026
The preferred return is how LPs protect their position in a PE fund. Understand the 8% standard, the waterfall, and four questions to ask before you sign.
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Add-on acquisition strategy: how PE builds platform value
June 2, 2026
In the lower middle market, add-on acquisitions drive over 80% of PE deals. Here’s why the multiple arbitrage math works — and where integration fails.
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Search fund timeline: what the 20 months look like
June 2, 2026
Stanford tracked 681 search funds. Average search: 20 months. Here is what each phase actually demands — from the raise to the first 90 days of ownership.
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Private equity hold period: what LMM buyers plan for
May 31, 2026
Hold periods in lower-middle-market PE determine whether buyers build value or flip assets. What sellers need to know before signing any LOI.
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Independent sponsor vs search fund: how to choose
May 31, 2026
The independent sponsor and search fund models look similar. They're not. Here's how the economics differ and which one fits where you are.
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Selling to private equity: what business owners get wrong
May 29, 2026
Most owners fixate on the multiple. They miss the structure. IBBA Q4 2024: $5M–50M businesses averaged 6.0x EBITDA. Here's what sellers get wrong.
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Quality of earnings report: what the numbers actually show
May 28, 2026
QoE EBITDA discrepancies caused 21.3% of broken LOIs in 2025. What a quality of earnings report examines — and how findings change your deal.
Read MoreSearch fund LOI: what operators get wrong
May 27, 2026
69% of search fund LOIs never close. Understanding what the letter of intent actually does and when to sign it changes your entire acquisition process.
Read MoreBuy and build private equity: how the math works
May 26, 2026
74.9% of PE deals are add-ons. What buy and build private equity means in the lower middle market — IRR math, platform criteria, and where it breaks.
Read MorePE operating partner: what the role actually demands
May 25, 2026
The PE operating partner has become the most important role in private equity. In the lower middle market, it's the difference between a 2x and a 3x.
Read MoreSearch fund financing: how the capital stack works
May 24, 2026
Most acquisitions use three capital sources — not one. Miss any leg and the deal collapses. Here's how ETA buyers structure the financing stack.
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What private equity firms look for when buying a business
May 22, 2026
PE firms run the same acquisition checklist on every deal. Most founders never see it. Here's what gets businesses bought and what gets them passed on.
Read MoreEntrepreneurship through acquisition: how ETA works
May 22, 2026
ETA lets operators skip startup risk entirely. Buy a profitable business, run it as CEO, and earn returns the Stanford data says average 35% IRR.
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EBITDA multiples in the lower middle market
May 20, 2026
What EBITDA multiples actually close at in the lower middle market — from GF Data and IBBA research — and what drives a 4x deal versus a 7x deal.
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Search fund due diligence: what most buyers miss
May 20, 2026
Most search fund acquisitions fail before the close. Here's what experienced operators check in due diligence — and what first-time buyers almost always skip.
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Operational value creation in PE: where returns come from
May 19, 2026
In lower middle market PE, leverage averages 3.2x EBITDA. Financial engineering doesn''t drive returns. Operational professionalization does.
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Veteran business exit planning: what owners get wrong
May 15, 2026
Most veteran business owners leave money on the table — and risk losing their federal contract pipeline — because exit planning comes too late.
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Whether you're an investor, veteran family, or business owner — there's a place for you at Patriot Growth Capital.