Pillar
SBA Financing
SBA 7(a) financing is the primary funding mechanism for A/E/LS firm ownership transitions under $15 million in deal size, and it lets key employees come in with as little as 5% down. The program calls for a 10% equity injection, and the deal is structured so the buyer's own cash requirement comes down to as little as 5%. Banks look at debt service coverage ratio, backlog quality, and owner concentration before approving a deal. When the structure is right, SBA financing pays the seller in cash at closing, with no contingent payments tied to future performance.
SBA Financing
Why the Bank Decides Your A/E Firm Sale, and What It Weighs
In a bank-financed A/E firm sale, the lender has the loudest voice. It sets the value and approves the structure. Here is how banks decide a transaction.
SBA Financing
SBA Financing for Employees Buying Their Employer's Business
How SBA 7(a) financing lets employees buy their employer's business with as little as 5 percent down, what the loan covers, and how the equity injection works.
SBA Financing
Seller-Financed MBO vs SBA-Financed MBO
Seller-financed and SBA-financed management buyouts differ on one thing that matters most: when the owner gets paid. Here is how the two structures compare.
SBA Financing
SBA-Financed Employee Buyouts: The Exit Path Owners Miss
How A/E firm owners sell to their key employees with SBA financing and get paid at closing, the exit path most owners never hear about until too late.
SBA Financing
Common Deal Structures for A/E Firm Buyouts: SBA, Seller Notes, and Hybrid Models
Compare the most common deal structures for architecture and engineering firm buyouts. SBA 7(a), seller financing, hybrid models, and earnouts explained for both buyers and sellers.
SBA Financing
What SBA Lenders Actually Look For When Financing an A/E Firm Buyout
SBA lenders approve A/E firm buyouts based on DSCR, backlog, client mix, and management depth. Learn the 5 factors that determine if your deal gets funded.