Live Oak Bank Office Hours informational meetings. Sign-Up for Live Oak's Weekly Office Hours - held every Tuesday, this provides an excellent preview on the SBA lending process and how Live Oak approaches business acquisition lending. This session will answer many of your initial questions. Register Here: redacted

You should check out Sam Rosati's self funded model (redacted. This model is basic but is all you need pre LOI. Once/if you get under letter of intent, you will want to create a more detailed financial model (and in particular incorporate the balance sheet and cash flow statement). To the extent that you have the tax returns, you can start that process, and append this sheet. In terms of how much to pay, you need to come up with an offer that will make 3 different actors happy: You, the seller, your investors/banker. Investors are looking for an IRR in excess of 30%. Bankers want to make sure your DSCR is northredactedIf you are self funded, and plan to put down 10-20% equity, that likely translates into a multiple between 3-4.5x. Maybe a bit more if it's an outstanding company. If you have more equity to put down, you will theoretically have a bit more room to pay (whether it makes economic sense to do so is a different question).