Hi, I am working on a roll up of HVAC contractors. I do not have a fund or investors backing me, so I am looking at creative capital stack options. With my marketing/sales background, I have good deal flow and motivated sellers.

Please tell me what is wrong with my plan below and/or suggest alternatives. My goal is to not pay a down payment on the acquisition and minimize any restrictions on cash flow.

Example: HVAC contractor for sale - $1M

30% of the business seller financed over a 3 year period - $100K per year

Year 3 - SBA loan to pay off the remaining 70% - (Since I am already the owner of the business at this point, I am assuming SBA would require zero down payment)

If multiple HVAC companies have been acquired over the 3 year period using the same model as above, I would pay off all of them with one SBA loan. Hopefully receiving more funding than needed because of the higher multiple with all companies combined under one loan.

Any thoughts or suggestions or alternative models?