Pillar

Buying Out the Boss

Buying your employer's A/E/LS firm is one of the most reliable paths to business ownership for a senior engineer or project manager, because the firm already has revenue, clients, and the track record a bank needs to approve a loan. SBA 7(a) financing makes the transaction accessible: buyers can come in with as little as 5% down. SBA loans call for a 10% equity injection, which is often split 5% from the buyer and 5% from the seller, and the bank finances the rest so the seller gets paid at closing. The key is understanding how lenders evaluate management depth, debt service coverage, and client concentration before they approve. Sellers who want to retire and buyers who want to own can both get what they need from a single, well-structured deal.