How to Use Debt Strategically Before a Business Sale

Most business owners think of debt as a tool for growth—but not enough realize how it can be used strategically in the years leading up to a sale. Whether it’s expanding locations, cleaning up the balance sheet, or buying out a minority shareholder, debt—when used correctly—can increase your business’s valuation and make it more attractive to buyers.

Olympic M&A’s Growth Capital Services help business owners prepare for a successful exit by aligning the right debt strategy with timing, structure, and long-term value creation.

Why Leverage Matters Pre-Sale

Buyers care about financial performance, scalability, and operational simplicity. Using debt intelligently can improve all three.

For example, borrowing to:

Eliminate outside partners
Consolidate scattered debt into one manageable facility
Fund growth that increases trailing EBITDA

…can lead to a higher purchase price, more favorable deal terms, and a broader buyer pool.

Smart Uses of Debt Before Selling

Here are several ways business owners are using debt to strengthen their business before going to market:

Buy Out a Minority Partner

Bringing ownership under one roof often simplifies the sale process and increases deal value. Debt financing—through cash flow lending or mezzanine financing—can provide liquidity without personal guarantees or equity dilution.

Fund Short-Term Growth

Using growth capital for expansion—such as opening a new location, adding clinical capacity, or upgrading technology—can raise EBITDA and position your business for a stronger valuation multiple.

Clean Up the Capital Structure

Consolidating multiple loans or lines of credit with a single private credit facility can simplify your balance sheet. Buyers value clean, predictable debt structures.

Bridge to Exit with Flexible Terms

Sometimes, access to non-bank financing provides a cushion in the final 12–24 months before a sale, giving the owner room to finish strong without selling prematurely.

How Olympic M&A Helps Owners Prepare

Our team helps clients structure and source the right type of financing—always with the end in mind. Through our Growth Capital Services, we:

Evaluate when and how to raise capital
Structure debt in a way that supports future sale value
Connect owners to cash flow lenders, mezzanine funds, and private credit providers
Help align pre-sale decisions with your overall exit strategy

The Right Capital Can Unlock More Than Growth—It Can Unlock Legacy

Too often, business owners delay or decline borrowing because they don’t want added complexity. But in the right hands, strategic debt can turn a good exit into a great one.

Whether you’re 12 months or 3 years from selling your business, the capital decisions you make today will shape the outcome tomorrow.

Let’s explore how a smart debt strategy can position you for a stronger—and more rewarding—exit.

Tony Siebel
Managing Director
📞 502.360.8320 ✉️ tonys@olympicma.com
🌐www.olympicma.com

About The Author

Tony Siebel is the Managing Director of Olympic M&A, a Louisville-based advisory firm
specializing in healthcare and high-value service businesses. With more than seven
years of experience in psychiatry, behavioral health, physician practices, and recurring
service industries, he has built a reputation for helping founders capture the full value of
their life’s work.
Through Olympic M&A, Tony connects owners with private equity groups, family offices,
and strategic buyers nationwide. His hands-on, data-driven approach ensures owners
maximize value while protecting their legacy during the most important transaction of
their lives.

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