Due Diligence & Quality Of Earnings Guide for SBA Financing

by a searcher

2 years ago

SBA lenders,

What type of quality of earnings reporting do you require for a deal with revenue size of $1M.                                                

Listing the items out will be helpful.

Thank you!

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4 comments

intermediary from Creighton University

I co-founded a YC-backed startup that automates parts of the QoE/DD processes so you don't make any mistakes during the most important part of the acquisition process. It prevents you from looking back and wishing you had asked a certain question during this stage. Our AI product saves you weeks of time and thousands of dollars. I think it would make sense for us to chat. You can schedule a time on my calendar here: https://calendly.com/dealwise/dealwise-30-minute-call

1 month ago | like reply | 0 likes

lender from University of Missouri - Columbia

At $1M you probably would be ok with just the tax returns. The key will be the addbacks. Small enough deal that a lot of accounting diligence shouldn't be required. However, if you are relying on addbacks outside of owner's comp, you might consider getting some additional verification for your own sake.

2 years ago | like reply | 0 likes

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