SBA Acquisition & Ownership Master Program

Module 1 – Welcome & Community Framework

Program Purpose

The SBA Acquisition & Ownership Master Program is built to guide you through the entire acquisition journey — from defining your acquisition target to running your business post-closing. Unlike other programs that stop at pre-qualification, we focus on execution, deal flow, and hands-on activities that move you closer to ownership.

Community Approach

Action-Oriented: You’ll be completing real-world activities every week.
Peer Engagement: Members share CIMs, strategies, and lessons learned.
Expert Access: When you have a viable deal, our team will review and structure it for maximum funding potential.

Why We Don’t Focus on Early Pre-Quals

A pre-qual without a deal is just a piece of paper. The fastest way to ownership is:

Learn the fundamentals of deal identification and analysis.
Build a short list of actual businesses.
Engage lenders with a solid structure, not just a credit score.

Module 2 – Defining Your Acquisition Parameters

Lesson 2.1 – Choosing Your Region

Factors to Evaluate:

Economic Health: Look for regions with low unemployment and GDP growth >2%.
Population Trends: Choose markets with population growth above the national average.
Competition: Study how saturated the industry is. Use Google Maps, Yelp, and industry reports.
Business Climate: Check business license requirements, local tax rates, and permitting speed.
Quality of Life: If you’ll be relocating, ensure the area fits your lifestyle.

Example:
If you want to buy a HVAC company, a growing Sunbelt city with hot summers and aging infrastructure will have more demand than a slow-growth northern town.

Lesson 2.2 – Selecting the Right Business Type

Key Considerations:

Industry Fit: Leverage your transferable skills (e.g., leadership, marketing, operations).
Financial Stability: Businesses with 3+ years of stable or growing revenue.
Recurring Revenue: Subscription-based or contract-based models are more stable for SBA loans.
Risk Profile: Avoid industries in steep decline or with heavy regulation unless you have specific experience.

Action Item: Create a Business Criteria Sheet with columns for “Must-Have,” “Nice-to-Have,” and “Deal Breakers.”

Module 3 – Finding Deals

Lesson 3.1 – Using Online Platforms

Top Websites:

BizBuySell – The largest listing site for small businesses; wide range of industries and price points.
BizQuest – Similar to BizBuySell, but has some exclusive listings not always cross-posted.
Axial – Focuses on mid-market opportunities ($1M–$20M); great for larger transactions.
MicroAcquire (now Acquire.com) – Specializes in online and SaaS companies; ideal for digital entrepreneurs.
Flippa – Marketplace for smaller online businesses, websites, and digital assets.
LoopNet – Primarily commercial real estate, but some businesses with real estate attached appear here.
DealStream – Global marketplace for small businesses, franchises, and investment opportunities.

Pro Tip:

Set up saved searches with email alerts so you get notified the moment new listings hit the market. Speed matters—being first in line gives you an edge.
Use multiple platforms since some brokers list exclusively on one site.

Lesson 3.2 – Traditional Broker Channels

Finding Brokers:

IBBA.org – Use the International Business Brokers Association directory to find licensed brokers in your area.
Chamber of Commerce / Local Events – Attend networking events to meet brokers and other owners directly.
Industry-Specific Brokers – Some brokers specialize in industries like healthcare, HVAC, ecommerce, etc. Seek them out if you have a niche focus.

Building Trust With Brokers:

Show financial capability – Share your SBA pre-qualification letter to stand out as a serious buyer.
Follow up consistently – Stay on their radar without becoming pushy. A monthly check-in often works best.
Define your exact search criteria – Be clear about:
- Industries of interest
- Revenue/SDE range
- Location preferences
- Deal size (e.g., $1M–$3M purchase price)
- Whether you want businesses with real estate, absentee ownership, or owner-operator models

This makes it easier for brokers to match you with the right opportunities.

Pro Tip:

Brokers prioritize buyers who are responsive, decisive, and financially ready. The clearer you are, the more likely they’ll send you deals first.

Module 4 – Evaluating Deals Quickly

Lesson 4.1 – The “3/5/30 Rule”

3 Minutes: Does the business meet your location, price, and industry filters?
5 Minutes: Quick scan of revenue trends and SDE margins.
30 Minutes: Read the CIM and note potential red flags.

Lesson 4.2 – Documents to Request

Last 3 years of tax returns.
Year-to-date P&L.
Balance sheet.
List of add-backs used to calculate SDE.

Red Flags to Watch:

Declining sales and / or profitability in the last 2 years. This creates a negative “Trend” which cause lenders to pause
Over 30% of revenue from one customer.
Excessive “personal” add-backs without receipts.

Module 5 – Structuring an SBA Loan for Success

Key Structure Elements:

Equity Injection: Usually 10%–20% of purchase price. Can combine cash + seller note (full 10-year standby).
Seller Financing: Helps bridge valuation gaps and gives seller skin in the game.
Working Capital: Include in loan to cover 3–6 months of operating expenses.
DSCR: Must generally be ≥1.25x for SBA comfort.
Collateral: If there’s a shortfall, SBA requires pledging personal real estate if available.

Example Structure:
Purchase price: $2M

Buyer cash: $150k (7.5%)
Seller note on full standby: $150k (7.5%)
SBA loan: $1.7M (85%)

Module 6 – From LOI to Closing

Timeline:

LOI Signed – 30–60 days exclusivity.
Term Sheet from Lender – 1–2 weeks.
Underwriting – 2–4 weeks.
Closing – Usually within 60–90 days from LOI.

During This Stage:

Provide docs promptly (delays here kill deals).
Begin your post-closing transition plan.

Module 7 – Transitioning to Ownership

First 90 Days Plan:

Keep Employees Onboard: Retain key staff. Offer stay bonuses if necessary.
Meet Top Clients: Build trust and continuity.
Learn Before Changing: Avoid big operational changes until you’ve observed 1–2 full cycles.
Stock vs. Asset Purchase