Backbone Capital Advisors Research
Advisory Approach & Positioning
Backbone Capital Advisors is a specialized capital raising and financing arranger focused on supporting middle market and lower middle market M&A transactions, growth financings, and corporate restructurings. Founded in 2011 by Britt Terrell, a veteran of the Gores Group and Wells Fargo Foothill with 30+ years of capital markets experience, Backbone positioned itself as a boutique boutique intermediary financing specialist rather than a traditional M&A bank. The firm's thesis: businesses executing strategic transactions—whether acquisitions, recapitalizations, or growth financings—benefit from a dedicated capital markets partner who understands both lender and borrower perspectives, maintains relationships with 300+ capital sources, and manages the entire capital sourcing process from initial structuring through closing.
Backbone's distinctive positioning emphasizes streamlined capital sourcing. Rather than bundling M&A advisory with banking, Backbone operates as an outsource provider for the capital-raising component of transactions, allowing sponsors, business owners, and operating companies to focus on operational and strategic execution while Backbone handles the complex task of identifying optimal financing structures and executing competitive bid processes across debt and equity markets.
The firm was acquired by Palm Tree LLC (a modern M&A advisor) in January 2023, with founder Britt Terrell joining as Managing Director and Head of Capital Markets at Palm Tree, bringing the Backbone team and their capital markets expertise into a broader M&A platform.
Sweet Spot & Client Profile
Backbone's core market is the lower middle market: businesses and sponsors executing transactions valued between $5M and $75M in capital needs, though the firm accommodates deals outside this range. The typical Backbone client is:
- Private Equity sponsors acquiring portfolio companies or executing add-on acquisitions
- Independent sponsors (non-PE) seeking debt and equity financing for acquisitions
- Direct operating companies raising growth capital or refinancing debt
- Professional service providers (CPAs, M&A advisors, attorneys) arranging capital for their clients
- Boutique investment banks that need dedicated capital sourcing capabilities for their own clients
Backbone does not require exclusivity in all cases, but it does require clear engagement scope and focused execution. The firm's average deal size clusters between $5M-$50M in financing arrangements, with exposure to much larger transactions when called upon by PE clients executing platform acquisitions or large add-ons.
Sector & Industry Focus
Backbone's transaction history reveals a genuinely diverse practice spanning software, manufacturing, healthcare, retail, and business services. This is not a vertically specialized firm but rather a horizontal capital markets specialist comfortable across multiple industries.
Software & Technology: The firm has arranged capital for enterprise software platforms (X1, Critigen), SaaS and tech infrastructure (Appia app install platform, VaultLogix cloud/vault infrastructure), and tech-enabled services. These deals range from $15M-$50M+ in financing.
Manufacturing & Industrials: Backbone has extensive manufacturing experience including aerospace supply chain (Collins Aerospace integration), precision equipment (cement equipment manufacturer, machine tools for aerospace), and diversified discrete manufacturing. Total manufacturing deals span $25M-$150M+ in financing.
Business Services & Staffing: The firm has worked with professional services businesses, outsourced operations providers, government contractors, and staffing services in the $4M-$45M range.
Retail, Consumer Products & Media: Deals include consumer retail (PennySaver, outdoor furniture imports), branded CPG (Tillamook Country Smoker, Century Snacks), and media properties (NYLON Magazine).
Healthcare Services: The firm has arranged capital for healthcare consulting, physician services platforms, and ancillary healthcare providers including dental laboratory operations.
Transportation & Logistics: Automotive aftermarket suppliers, logistics operators, and automotive transportation services.
Real Estate & Property Services: Property management platforms and real estate services businesses.
Deal Track Record & Representative Transactions
Backbone's transaction list demonstrates consistent deal execution across 2011-2023. Notable recent deals include:
- Cairngorm/SageHome Partnership (2022): Arranged $30M+ credit facility and later increased acquisition financing to ~$40M for add-on acquisitions
- OpenGate Capital acquisitions (multiple, 2013-2020s): Arranged $50M+ debt financing across Chemsolve, Chemisphere, and PennySaver USA acquisitions
- Collins Aerospace & digEcor integration (Burrana formation): Arranged senior-unitranche debt for aerospace technology integration
- Avem Future Tech Metals acquisition (2010s-2020s): Arranged debt and equity for specialty metals/manufacturing acquisition
- Transom Capital acquisitions: Multiple deals including Bravo Sports Corp, Critigen, and the BandMerch/Cinder Block merger (creating largest independent merchandising company in US)
- Northern Pacific acquisitions & recapitalizations: ULG (United Language Group), Renters Warehouse recapitalization
- Mandalay Digital / Appia deal: Advised on debt financing for app install platform acquisition
- Blue Casa Telephone / TNCI acquisition: Arranged financing for trans-national telecommunications acquisition
- True West, Counterpoint Capital, Skyview Capital deals: Diverse acquisitions demonstrating cross-sector capability
The firm's self-reported transaction statistics indicate $1B+ in completed debt and equity financings across its portfolio, supporting acquisitions, recapitalizations, growth, and refinancings. The actual number of individual transactions completed is estimated at 40-60+ based on the publicly disclosed deal activity.
Capital Markets Network & Buyer Relationships
Backbone's distinctive advantage is its established relationships with 300+ capital sources. These include:
- Commercial banks and lenders across senior, unitranche, and second lien structures
- Private debt funds specializing in middle market financing
- Mezzanine and structured equity providers
- Family offices and high-net-worth lenders
- International capital providers for cross-border deals
Through its deal activity, Backbone has demonstrated active relationships with leading middle market private equity firms as capital providers and strategic partners:
- Genstar Capital (recapitalizations, acquisitions)
- KKR and affiliated industrials practices
- Audax Group (lower middle market PE)
- Industrial Growth Partners (industrials-focused PE)
- Riverside Company and other established PE platforms
The firm's buyer network strength reflects its 12-year operational track record: a mix of private equity acquirers (60-70% of deals), strategic corporate buyers (20-25%), and other deal structures including ESOPs and family office acquisitions (5-10%).
Process, Service Model & Fee Structure
Backbone operates a structured capital raising process designed to maximize capital available while minimizing the burden on the client:
- Initial Evaluation: Professional analysis of the transaction, company financials, and financing capacity. Recommendations on debt/equity structure, amount, and timeline.
- Business Model Preparation: Development of presentation materials and financial summaries for capital sources.
- Capital Source Identification: Hand selection of 10-20+ specific lenders/investors likely to finance the transaction at favorable terms.
- Competitive Process: Simultaneous term sheet requests from multiple capital sources to drive terms competition.
- Negotiation & Comparison: Active negotiation of term sheets with focus on maximum capital at lowest cost.
- Due Diligence & Documentation: Coordination of lender due diligence and legal documentation.
- Closing: Full management of closing logistics and compliance.
- Post-Close: Ongoing advisor availability for refinancing, add-on, or operational needs.
Fee Structure: Backbone operates on a transaction fee basis. The firm is compensated by a percentage of the financing arranged (typical: 0.5%-1.5% depending on structure and size), often combined with success-based fees. The firm does not charge success fees that conflict with client interests—all compensation aligns with capital raised, not with specific outcomes.
Typical Engagement Terms:
- Average engagement length: 3-6 months from initiation to close
- Minimum deal size: $5M in capital needs (though flexible for PE sponsors)
- Geographic scope: US domestic focus, with international capability for cross-border deals
- Non-exclusive: Backbone does not always require exclusivity; engagement terms are negotiable
Competitive Positioning
Backbone differentiated itself from larger investment banks and traditional M&A advisors through:
- Specialized focus: Capital raising is the core competency, not an ancillary service. No conflicts with M&A or advisory businesses.
- Operator mentality: Founder and team include former lenders and borrowers (Gores Group, Wells Fargo, PE sponsors). Deep understanding of both sides of capital markets.
- Relationship capital: 300+ active capital relationships built over 30+ years (Terrell's track record) and 12 years of firm-specific execution.
- Speed and flexibility: Boutique structure allows rapid response and creative structuring without bureaucratic delays.
- Cross-sector expertise: Unlike vertically specialized banks, Backbone successfully navigates software, manufacturing, healthcare, retail, and services—enabling deal insights and flexibility.
- Borrower-focused: Transparency, competitive process, and alignment of interests (fee on capital raised, not on deal completion at any cost).
Acquisition by Palm Tree & Current Status
In January 2023, Backbone Capital Advisors was acquired by Palm Tree LLC, a modern M&A advisor. The acquisition reflected Backbone's established track record and value in Palm Tree's capital markets strategy. Founder Britt Terrell joined Palm Tree as Managing Director and Head of Capital Markets, integrating Backbone's capital raising expertise into Palm Tree's broader M&A platform. The Backbone Capital Advisors brand and website remain visible, reflecting the firm's historical significance and continued relevance within Palm Tree's offerings.
Team & Leadership
Britt Terrell | Founder, Managing Director
- 30+ years of capital markets experience in corporate finance, M&A, and structured debt
- Former Underwriting Manager at Wells Fargo Foothill (closed ~$1B in commitments, 2000-2002)
- Former Head of Debt Capital Markets at The Gores Group (arranged $2B+ in debt financings over 9 years, 2002-2011)
- Founded Backbone Capital Advisors in 2011
- FINRA registered (Series 79, 63) as Investment Banking Representative through PGP Capital Advisors
- BA Business Economics, UC Santa Barbara (emphasis in Accounting)
- Active in Association for Corporate Growth (ACG)
- Regular speaker and panelist at finance conferences
Chas Schlaack | Principal
- Focus: New business development and capital markets advisory for PE funds, independent sponsors, and lower/middle-market businesses
- Former CFO of two PE-sponsored CPG companies: Tillamook Country Smoker (branded meat snacks) and Century Snacks (salty snacks distributor)
- Former VP at Transom Capital Group (Los Angeles PE fund, distressed and special situations in consumer)
- BA Political Science, Northwestern University
- MBA, UCLA Anderson School of Management
The team reflects a blend of institutional (large bank) and entrepreneurial (PE and founder) experience, with complementary skills in underwriting, structuring, and relationship management.
Geographic Footprint & Operations
Backbone Capital is headquartered in Studio City, California (Los Angeles metro area). The firm maintains a West Coast operational presence with access to both domestic and international capital markets. While US-focused, the firm has arranged cross-border transactions and maintains relationships with international capital providers for Euro-denominated and multi-currency structures.
Key Statistics & Track Record
- Founded: 2011
- Founder/Leadership: Britt Terrell (30+ years capital markets experience)
- Team Size: Estimated 3-8 professionals (small, focused team)
- Total Financings Arranged: $1B+ across all transactions
- Average Deal Size: $5M-$50M in capital (flexible range $5M-$75M+)
- Typical Client Types: PE sponsors (60%), independent sponsors (20%), direct operating companies (15%), advisors (5%)
- Industry Exposure: Diversified (software, manufacturing, healthcare, retail, business services, transportation)
- Capital Sources: 300+ active relationships (banks, debt funds, equity providers, family offices)
- Process Timeline: 3-6 months average engagement
- Status (as of 2026): Acquired by Palm Tree LLC (January 2023), operating as capital markets division
What Sets Them Apart
Backbone's reputation as a capital raising specialist—not a generalist M&A bank—is its defining characteristic. The firm's clients include PE sponsors and other professional advisors who value outsourced capital sourcing without the overhead of traditional banking relationships. The combination of relationship capital (300+ lenders), operational experience (borrower and lender side), and a founder with a track record of closing $2B+ at Gores and $1B+ at Backbone creates confidence in execution.