The Step-Up Legacy Plan is Allen Business Advisors' structured sale of an architecture, engineering, or land surveying firm to its key employees, funded with SBA bank financing. Employees buy in with as little as 5 percent down, the bank funds the purchase, and the seller receives 95 to 100 percent of proceeds in cash at closing. It delivers employee ownership without an ESOP.
How it works
The plan packages everything a bank needs to finance an internal sale: a professional valuation, SBA loan arrangement, and legal documentation prepared the way lenders expect to see it. SBA loans call for a 10 percent equity injection, often split 5 percent from the buyers and 5 percent from the seller through a standby note. The bank funds the balance, and the transaction typically closes in 3 to 6 months.
The seller is paid at the closing table. With 10 percent employee equity, owners typically receive all proceeds at closing; with 5 percent, roughly 95 percent, with the balance structured through a seller note.
Who it fits
The plan is built for firms an ESOP was never designed to serve: A/E and surveying practices under roughly $15,000,000 in revenue. It works best for firms with $1,000,000 to $8,000,000 in revenue and 10 to 50 employees, where one to three key employees are ready to step into ownership.
Why it beats the usual alternatives
Compared with an ESOP, there is no six-figure setup bill, no trust, and no ongoing plan administration; it is a straightforward business sale. Compared with seller financing, the owner is not waiting a decade to collect. And compared with selling to an outside buyer, the firm's name, culture, and client relationships stay with the people who built them. Sell to your employees, let the bank fund it, and get paid at closing.
Go Deeper
The Step-Up Legacy Plan in full