Deal scenarios
What a financeability read looks like.
Real SBA acquisition situations and how we'd read them. Illustrative, anonymized scenarios for explanation only — not actual transactions unless explicitly marked "Actual," not offers, and not predictions of any specific outcome.
Restructure to fit
$100K cash · $1M target
- Issue
- ~10% equity sits right at the floor, leaving no cushion for fees or working capital.
- Our read
- Possibly workable with a partial standby seller note.
- Lender concern
- Total injection, post-close liquidity.
- Next step
- Model a 5% cash + 5% standby-note structure.
Re-price or pass
$900K target · ~$450K financeable
- Issue
- Cash flow and collateral don't support the asking price.
- Our read
- The gap is too wide as priced.
- Lender concern
- DSCR, valuation support.
- Next step
- Renegotiate price or layer in seller financing.
Diligence-dependent
Add-backs don't reconcile to tax returns
- Issue
- Adjusted earnings can't yet be substantiated.
- Our read
- Financeable amount likely sits below asking until proven.
- Lender concern
- SDE support, quality of earnings.
- Next step
- Substantiate add-backs before signing an LOI.
Lender-match
Strong cash · weak relevant experience
- Issue
- Management-fit risk for the target industry.
- Our read
- Financeable with the right lender and a transition plan.
- Lender concern
- Experience, ownership transition.
- Next step
- Match a flexible lender; document a transition plan.
Prioritize
Broker with multiple buyers
- Issue
- Hard to tell which buyer can actually close.
- Our read
- Rank by equity, credit, experience, and target fit.
- Lender concern
- Screening, not underwriting.
- Next step
- Run each buyer through the check before releasing CIMs.
Structure-dependent
Seller note needed to bridge valuation
- Issue
- Price sits above the clean-finance range.
- Our read
- A standby seller note may close the gap.
- Lender concern
- Standby terms, DSCR after debt service.
- Next step
- Structure a standby note and re-test the math.
Cleanup-dependent
Enough SDE · weak books
- Issue
- Earnings are real but poorly documented.
- Our read
- Financeable after the financials are organized.
- Lender concern
- Bookkeeping quality.
- Next step
- Organize financials / commission a QoE.
Not yet
Attractive business · insufficient equity
- Issue
- The injection is too light for the target.
- Our read
- Not yet — needs more equity or partners.
- Lender concern
- Injection source and seasoning.
- Next step
- Raise or season equity, or bring in investors.