Carve-out SBA?

searcher profile

January 16, 2024

by a searcher from University of Pennsylvania - The Wharton School in Tampa, FL, USA

I'm looking at a business that is being carved out of an existing business (they are selling the maintenance side but keeping the repair side). Can I get an SBA loan even if the P&Ls are not separate?

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commentor profile
Reply by a professional
in Janesville, WI, USA
I have done a few QoEs recently on carve outs in order to get the bank more comfortable. Usually revenue is not too hard to parse out. Gross profit is a bit more difficult but becomes easier if the employees are separate. OpEx is usually the hardest but can still be done. Feel free to DM me if you'd like to talk about your specific deal.
commentor profile
Reply by a lender
from Bloomsburg University of Pennsylvania in Ambler, PA 19002, USA
Yes, although a lot of work to be completed to get parties comfortable.. some form of accountant prepared financials (reviewed/audited) are likely necessary that split off the business units and tie back to tax statements historically. May need some additional diligence to be done by a party you trust to verify
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