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
Buying a daycare: acquisition guide for operators
September 16, 2026
Daycares are overlooked acquisition targets. Here is the deal math, due diligence, and licensing reality for buyers.
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How to sell a family business
September 16, 2026
Selling a family business requires family alignment, normalized financials, and a structured buyer process. Here is how to protect price and legacy.
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Buying a veterinary practice: what operators need to know
September 15, 2026
Veterinary practices offer recurring revenue, a succession crisis, and a clear exit path to consolidators. Here is how ETA operators buy one.
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Buying a plumbing business: what operators need to know
September 14, 2026
Plumbing businesses trade at 3.2x median. Search fund buyers need to know the licensing trap, working capital math, and how to structure the deal.
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Buying a physical therapy practice: the ETA guide
September 13, 2026
Physical therapy practices are fragmented, cash-flowing, and motivated to sell. Here is what ETA buyers need to know before they make an offer.
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Buying a pharmacy: what ETA operators need to know
September 12, 2026
Independent pharmacies trade at 3-6x EBITDA with loyal, recurring prescription revenue and thin buyer pools. Here is what ETA operators need to evaluate.
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Negotiating with private equity: what sellers get wrong
September 11, 2026
Most business owners give away leverage before negotiations start. Here is the PE playbook and how to use it against them.
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How to negotiate buying a business
September 11, 2026
Most buyers negotiate on price. The best negotiate on structure. Here is how to negotiate when buying a business and close on the right terms.
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Buying an auto repair shop: what operators need to know
September 10, 2026
Auto repair shops trade at 2.7x SDE on average in 2026. Here is the valuation framework, SBA financing math, and due diligence priorities.
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Mezzanine debt in lower-middle-market buyouts
September 9, 2026
Mezzanine debt fills the gap between senior loans and equity in buyout capital stacks. Here is what it means for operators acquiring sub-$50M businesses.
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How to buy a business with seller financing
September 9, 2026
Seller financing bridges the gap between what banks lend and what a deal costs. Here is how it works and how to negotiate the terms.
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How to find a buyer for your business
September 9, 2026
Finding a buyer for your business means running a structured parallel process, not waiting for one to appear. Here is how to reach each type of buyer.
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Buying a construction company: what operators need to know
September 8, 2026
Construction companies trade at a median 3.0x cash flow multiple with SBA covering 90% of the deal. Here is what operators need before signing an LOI.
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Add-on acquisition: the buy-and-build playbook
September 7, 2026
Add-on acquisitions let PE operators create value through multiple arbitrage. Learn how buy-and-build works, what targets to select, and how to execute.
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Minority recapitalization: keep control, take cash
September 7, 2026
A minority recapitalization lets you sell 20-40% of your business to a PE partner, take liquidity now, and keep majority control.
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Buying a landscaping business: what the numbers say
September 6, 2026
Landscaping companies trade at 3x-7x EBITDA. Route density, contract mix, and crew continuity determine price. What acquirers need to know.
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Buying a cleaning business: what operators need to know
September 5, 2026
How to evaluate, finance, and close on a cleaning business acquisition. SDE multiples, SBA 7(a) financing, due diligence, and the 90-day transition plan.
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Sell your business to private equity: the owner's guide
September 4, 2026
What lower-middle-market owners need to know before a PE firm calls: deal structure, valuation, RWI, rollover equity, and how to prepare for a PE exit.
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Reps and warranties insurance: the ETA buyer guide
September 4, 2026
Reps and warranties insurance protects buyers after closing. Premiums run 2.5 to 3.5 percent of coverage. Here is how ETA operators evaluate it.
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Confidential information memorandum: the seller's guide
September 3, 2026
The CIM is the document that determines whether buyers compete for your business. Here is what it contains, who prepares it, and what sellers get wrong.
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Buying a restaurant: what operators need to know
September 2, 2026
Restaurant valuation runs 1.5x-3x SDE for owner-operated and 4x-7x EBITDA for manager-run. Here is what to check before you sign.
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Private equity portfolio monitoring: what GPs actually track
September 1, 2026
Most LMM PE firms track the wrong metrics, see data too late, and have no playbook for when numbers break. Here is how to fix all three.
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Buying a bed and breakfast: the operator's guide
September 1, 2026
Buying a bed and breakfast means acquiring real estate and an operating business at once. Here is how to structure the diligence and the deal.
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Earnout in M&A: what sellers need to know
August 30, 2026
SRS Acquiom data shows earnouts pay about 21 cents on the dollar. Learn what earnout structures mean for business sellers and which protections matter.
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Buying an existing franchise: what operators check first
August 30, 2026
Buying an existing franchise means acquiring a running business, not just a brand name. Here is what acquisition operators verify before they sign.
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Buying a storage facility: what operators pay and why
August 29, 2026
Self-storage trades at 4.6x SDE in 2026. Here is the operator guide to cap rates, SBA financing, and the rent-roll diligence that kills most deals.
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ESOP succession planning: what business owners need to know
August 28, 2026
How an ESOP works as a succession exit, what the Section 1042 tax deferral does for C-corp sellers, and when an ESOP beats a PE sale.
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SaaS acquisition: what search fund operators need to know
August 28, 2026
SaaS trades at 4x to 7x ARR in the search fund sweet spot. Learn multiples, diligence, and deal structure for buying a software company as a searcher.
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Buying a vending machine business: the ETA operator's guide
August 27, 2026
Vending route businesses offer recurring cash flow, retiring boomer owners, and SBA financing. Here is the ETA operator's due diligence framework.
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Buying a car wash: what ETA buyers need to know
August 25, 2026
Express car wash acquisitions offer recurring membership revenue and SBA financing. This guide covers valuation, due diligence, and what to avoid.
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Buying a laundromat: what ETA buyers need to know
August 24, 2026
Laundromats trade at 2.0x-4.0x SDE. Three structural traps kill most acquisition deals. Learn what ETA buyers must verify before signing an LOI.
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Dividend recapitalization: what it is and when PE uses it
August 24, 2026
A dividend recap uses new debt to pay a special cash dividend to PE sponsors. No equity changes hands. But the company's balance sheet gets heavier.
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Buying a medical practice: what operators need to know
August 23, 2026
Medical practices are strong ETA acquisition targets. Here is what operators need to know about valuation, CPOM structure, due diligence, and financing.
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Buying a dental practice: what the numbers show
August 22, 2026
Dental practices trade at 3.5x to 6.5x adjusted EBITDA. Here is how ETA operators structure the deal, finance it, and what kills offers before close.
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When to sell your business
August 19, 2026
Six million U.S. businesses face ownership transitions by 2035. Most owners wait too long. Here is the signal stack that tells you when the window is open.
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How to value a small business for sale
August 18, 2026
The data-backed method for buyer-side valuation: SDE vs EBITDA, real multiples from 9,586 transactions, and what drives the number up or down.
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How to find a business broker
August 17, 2026
Most buyers pick the first business broker they talk to. That mistake costs six figures. Here is how to find the right intermediary for your acquisition.
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Rep and warranty insurance: how it protects the deal
August 17, 2026
Rep and warranty insurance transfers M&A breach risk to an insurer. Here is how it works, what it costs, and when sellers should accept an insured deal.
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The Business Acquisition Process: A Step-by-Step Guide
August 16, 2026
The business acquisition process runs in six phases. Here is what each one looks like, how long it takes, and where most deals die.
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Buy-sell agreement for small business owners
August 16, 2026
Most baby boomer business owners have no legal framework for what happens at retirement. A buy-sell agreement fixes that before it becomes a crisis.
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How to buy an established business: the operator's playbook
August 15, 2026
The operator's playbook for buying an established business: six phases from acquisition thesis through due diligence to close.
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Seller's discretionary earnings: the valuation guide
August 12, 2026
SDE normalizes a small business income stream so buyers see what it actually earns. How to calculate, verify addbacks, and apply the right multiple.
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Holding company structure: the ETA buyer's guide
August 11, 2026
Form a holding company before you close. It isolates liability, keeps future deals clean, and gives you tax flexibility you cannot retrofit later.
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Business valuation for sale: what buyers pay
August 10, 2026
Most boomer business owners believe their company is worth far more than buyers will pay. What buyers actually see and how EBITDA multiples work.
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Business purchase agreement: what buyers negotiate
August 8, 2026
The BPA is where most ETA operators lose ground. Here is what you need to know about the key clauses before the wires go out.
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How long does it take to sell a business
August 7, 2026
Most businesses take 9 to 12 months to sell. Deal size sets the baseline. Preparation determines where you land in that range.
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How to read a CIM when buying a business
August 7, 2026
A confidential information memorandum gives buyers their first detailed look at a business for sale. Here is how to read one like an operator.
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Seller note in ETA acquisitions: how they work
August 6, 2026
A seller note fills the gap between SBA debt and purchase price in ETA deals. How they are structured, priced, and why sellers agree to carry paper.
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Business broker fees: what buyers need to know
August 4, 2026
Business broker fees run 8-12% on Main Street deals and 6-10% blended on lower-middle-market acquisitions. What every buyer needs to understand.
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Acquisition due diligence checklist for buyers
August 3, 2026
The six-track acquisition due diligence checklist for lower-middle-market buyers. Financial, legal, operational, customer, HR, and working capital.
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Business exit strategy: what operators must do first
August 2, 2026
A business exit strategy built years before the sale captures 20-40% more value. The operator's framework for timing, valuation, and buyer selection.
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How to buy a business with seller financing
August 1, 2026
Seller financing lets ETA buyers reduce cash and bridge valuation gaps. The two-note structure, SBA SOP 50 10 8 changes, and key negotiation points.
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How to buy an existing business: the operator's guide
July 31, 2026
Buying an existing business requires a defined process. Here is how veteran operators approach the acquisition from search to close.
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Entrepreneurship through acquisition: an operator's guide
July 29, 2026
ETA is the fastest documented path from operator to owner-CEO. Stanford 2024: 681 funds, 35.1% mean IRR, 4.5x average return. Here is how the model works.
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How to find businesses to buy: a sourcing playbook
July 28, 2026
Stanford data shows search fund operators contact 3,000+ companies per deal. Here is the four-channel sourcing system that separates operators who close.
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Asset purchase vs stock purchase for searchers
July 26, 2026
The structure question that changes deal economics: asset purchase vs stock purchase, explained for lower-middle-market searchers.
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How to acquire a business: the search fund playbook
July 24, 2026
Acquiring a business through the search fund model follows five defined stages. The median search runs 19 months. Here is how to execute each one.
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Business succession plan: what buyers need to see
July 22, 2026
Seventy percent of businesses that go to market don't sell. The reason isn't the market. Here's the succession plan PE buyers need to see.
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Management buyout: how the deal actually works
July 22, 2026
MBOs represent ~14% of lower-middle-market PE deal volume. Here is how the capital structure, PE sponsorship, and valuation dynamics actually work.
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Leveraged buyout in the lower middle market: how it works
July 19, 2026
How LBOs work in $2M-$10M EBITDA acquisitions: capital stack, debt layers, seller note terms, and what sellers should ask PE buyers before diligence.
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How to sell a small business: the PE buyer's guide
July 18, 2026
Most sellers leave money on the table because they start thinking about an exit when they are burned out. Here is the process that changes that.
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Small business acquisition: what it actually looks like
July 17, 2026
9,546 small businesses changed hands in 2024. Here is what the acquisition process actually looks like for operators who close deals.
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The silver tsunami is here. Most businesses won't sell.
July 15, 2026
92% of boomer-owned businesses close rather than sell. Six million SMBs face succession by 2035. The math is brutal and most sellers aren't ready.
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Add-on acquisition strategy: how PE builds value
July 15, 2026
Add-on acquisitions account for 70% of PE deal count. Here's how the buy-and-build strategy creates value in the lower middle market.
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Private equity recapitalization: how owners get paid twice
July 12, 2026
A private equity recap lets you take most of your chips off the table now and stay for a bigger second exit. How the structure works and who it fits.
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Strategic buyer vs financial buyer: seller guide
July 10, 2026
Strategic buyer vs financial buyer: the differences that determine your exit price, deal structure, and what happens after close.
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Working capital peg: the deal term searchers miss
July 10, 2026
The working capital peg determines how much cash sellers deliver at close. First-time search fund buyers define it too late and lose real money.
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Search fund customer concentration: the 20% rule
July 9, 2026
Customer concentration is the #1 reason SBA lenders decline acquisition loans. Thresholds, valuation impact, and how to structure past it.
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Letter of intent in a business acquisition: what it covers
July 8, 2026
The LOI is not a formality. It sets the price anchor, creates exclusivity, and signals whether you are a capable buyer. Here is what every section covers.
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Search fund earnout: what operators get wrong
July 8, 2026
79% of earnout dollars never pay out. Here's the anatomy of a search fund earnout, why they exist, and what ETA operators must know before signing.
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Owner-dependent businesses: how to prepare for exit
July 6, 2026
92% of small business exits end in closure. Owner dependency is the primary cause. Here is what acquirers see, how they price it, and what to fix.
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Corporate carve-outs: the LMM private equity opportunity
July 5, 2026
Carve-out deals hit 11.8% of PE buyouts in Q4 2024. Here is why LMM operators pursue them and how to navigate TSA complexity.
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Post-acquisition integration plan: the 100-day blueprint
July 3, 2026
83% of failed PE deals cite integration as the primary cause. This is the 6-workstream 100-day blueprint veteran operators use after acquisition.
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Search fund operator selection: what LPs actually look for
July 3, 2026
In search fund investing, the operator is the investment. Here are the five criteria LPs use to evaluate operators before writing a check.
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Business exit planning checklist: what to do before you sell
July 1, 2026
A practical checklist for small business owners preparing to sell. What to fix, clean up, and decide before a buyer ever sees your numbers.
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Platform company private equity: what sellers need to know
July 1, 2026
A platform company in PE is the anchor acquisition in a buy-and-build strategy. Learn what makes a business platform-worthy versus an add-on target.
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Search fund proprietary deal flow: how the math works
June 29, 2026
64% of search fund acquisitions come from proprietary sourcing. The funnel math, four outreach channels, and what separates searchers who close.
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Independent sponsor in private equity: how the model works
June 28, 2026
Independent sponsors acquire businesses without a committed fund. How the economics, deal structure, and capital stack work in the lower middle market.
Read MoreSearch fund seller transition: what operators miss
June 27, 2026
Most search fund buyers spend 18 months on due diligence and two paragraphs on seller transition. That is backwards. Here is what a structured 6-12 month handoff actually looks like.
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Purchase price allocation when selling a business
June 27, 2026
How you allocate the purchase price in an asset sale determines how much of the deal proceeds you keep. Most sellers leave six figures on the table.
Read MoreBusiness succession planning statistics: the buyer's view
June 22, 2026
Only 13% of business owners have an exit plan. McKinsey finds 92% of SMBs close instead of sell. What the succession gap means for buyers.
Read MoreSearch fund reps and warranties: what operators must protect
June 21, 2026
Representations and warranties are the most negotiated part of any ETA purchase agreement. Here is what operators must protect before they sign.
Read MoreThe Working Capital Peg in Search Fund Deals
June 19, 2026
The working capital peg is the most negotiated term between LOI and close in ETA acquisitions. Here's how it works and where disputes actually surface.
Read MoreEBITDA add-backs: what search fund buyers actually accept
June 18, 2026
EBITDA add-backs inflate asking prices by 20-50%. Learn which adjustments search fund buyers accept, which get rejected, and how to build your position.
Read MoreEarnout in an acquisition: what sellers need to know
June 17, 2026
One in three PE deals includes an earnout. SRS Acquiom data shows they pay 21 cents on the dollar average. Here is what sellers need to know.
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Selling your business checklist: what PE buyers want
June 15, 2026
Most owners start preparing too late. Here is the pre-sale checklist that separates deals that close from those that don't.
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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.
Read MoreSearch 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.
Read MorePrivate 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.
Read MoreSearch 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.
Read MorePrivate 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.
Read MoreAdd-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.
Read MoreSearch 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.
Read MorePrivate 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.
Read MoreIndependent 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.
Read MoreSelling 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.
Read MoreQuality 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.