I'm considering a business that is directly tied to construction of Multi-family and Hotels. The region I’m in has seen significant growth in multi-family construction in recent years. While demand is still strong, Interest rates have changed the economics for development. The seller of course believes that the business will continue to see significant demand increases.
What are some SBA compliant ways to structure a deal to mitigate risk of demand declines in coming years?
Deal Structure to mitigate risk
by a searcher from University of Arkansas (System)
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With that said, there are always ways to structure deals if they make sense. Likely the biggest issue you will face today buying such a company from SBA lenders is experience. If you do not have direct industry experience, that will make it challenging to buy a construction company in any market but even more so today when the construction industry is expecting to face some headwinds. However, I would be more than happy to jump on a call and discuss this request or options with you in more detail if you would like. We are a Commercial Loan Brokerage shop with over 500 funding partners. You can reach me here or directly at --@----.com Good luck.