For Key Employees
How to buy the company you work for
You can buy the business you work for with SBA financing and as little as 5 percent down. This is the same transaction owners use to sell to their teams, seen from your side of the table as the key employee buying out the owner.
This guide covers how to buy out your boss, how to finance buying your employer's business, and what you actually need to bring to the deal.
The owner gets paid at closing through the bank, so you are not asking them to carry you for years.
Can I Buy the Company I Work For?
Yes, and you are the natural buyer
Owners of architecture, engineering, and land surveying firms overwhelmingly want to hand the firm to the people who helped build it. You already know the clients, the projects, and how the work gets done, which is exactly the continuity a lender and a retiring owner want to see.
The obstacle is almost never willingness. It is financing. Once you understand how an SBA loan to buy the business you work for is structured, buying the company you work for stops looking impossible and starts looking like a plan.
How to Finance Buying My Employer's Business
An SBA loan does the heavy lifting
An SBA 7(a) loan to buy the business you work for can fund the purchase price, goodwill, working capital, and closing costs in a single package. The standard equity injection is 10 percent of the deal, and it is often split 5 percent from you and 5 percent from the seller through a standby note.
That structure is the engine behind the Step-Up Legacy Plan. The bank takes on the repayment risk, the seller receives 95 to 100 percent of their proceeds in cash at closing, and you repay the loan out of the firm's cash flow over time.
How to Buy Out Your Boss
From key employee to owner, step by step
Buying out the owner works best when you come to the table with a financeable structure, not just an interest. Here is the path most buyers follow.
01
Confirm the numbers privately
Before you approach anyone, an advisor confirms whether the firm's size, profitability, and cash flow make a buyout financeable. Most owners do not know their own firm's value either.
02
Line up the financing
An SBA 7(a) loan to buy the business you work for can fund the purchase price, goodwill, working capital, and closing costs in one package, with as little as 5 percent down from you.
03
Structure the buying group
One buyer or several. Adding a second or third key employee spreads the down payment and strengthens the application when a single buyer falls short on credit or liquidity.
04
Approach the owner as a plan, not a wish
You come to the table with a financeable structure and a valuation basis, so the conversation lands as a credible offer rather than an ask.
05
Close and take ownership
The bank funds the balance, the seller is paid at closing, and you step into ownership of the firm you already helped build.
What You Actually Need to Bring
The real cost of buying the business you work for
The numbers are smaller than most employees assume, especially with co-buyers.
As little as 5 percent down
SBA loans call for a 10 percent equity injection. It is often split 5 percent from you and 5 percent from the seller through a standby note, so your cash in the deal can be as little as 5 percent of the price.
Where the down payment comes from
Most employee buyers fund their share with a home equity loan or line of credit, which SBA lenders accept. With co-buyers, each person's share drops further.
A firm that covers the debt
The business income repays the loan. Banks look at three years of historical cash flow, not projections, to confirm the firm can carry the payments.
Buyer FAQ
What key employees ask before buying out the owner
- Can I buy the company I work for?
Yes. Key employees regularly buy the business they work for using SBA financing. If the firm generates enough cash flow to cover the loan payments and you are ready to take on ownership, buying the company you work for is realistic, often with as little as 5 percent down.
- How do I finance buying my employer's business?
The most common path is an SBA 7(a) loan, the financing people mean when they search for an SBA loan to buy the business I work for. One loan can cover the purchase price, goodwill, working capital, and closing costs. The standard equity injection is 10 percent, frequently split 5 percent from the buyer and 5 percent from the seller.
- How much money do I need to buy out my boss?
As little as 5 percent of the purchase price. That works out to about $50,000 for every $1,000,000 of value. When two or three key employees buy together, each person's share of the down payment is smaller.
- What if I can't personally qualify for the loan on my own?
It is rarely a dealbreaker. SBA lenders look at the combined strength of the buying group, not just one person. Adding a co-buyer, restructuring the down payment, or using a seller note usually bridges the gap.
- Do I have to tell my boss I want to buy the firm before I know if it is possible?
No, and it is better not to. Start with a confidential conversation with an advisor first. Once the numbers are confirmed, we help you structure how and when to raise it with the owner so it lands as an opportunity, not a surprise.
- How long does it take to buy out the owner?
Typically 3 to 6 months once the owner is ready to move forward, depending on how quickly financials are prepared and the lender processes the loan.
Ready to Explore Your Options
Find out what buying out the owner would take
Bring us the firm you work for and your timeline. We will confirm privately whether a buyout is financeable and show you what your numbers could look like, before you say a word to the owner.