EBITDA Multiple to Qualify for SBA Loan

searcher profile

July 08, 2022

by a searcher in Atlanta, GA, USA

New self funded searcher here. Given the elevated EBITDA multiples in services business (HVAC, Pest, IT) due to PE consolidation over the last few years how are you all managing to stay competitive for deals from a multiple perspective while maintaining the requirements for a SBA loan?

Seems like lenders are comfortable providing 80% leverage on a 4-5x EBIDTA transaction but to be a competitive buyer now in the more traditional search friendly industries assets are trading for 7-10x EBITDA.

Anyone have some success financing a 7x EBITDA deal with 10% seller financing through a SBA lender?

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commentor profile
Reply by a professional
from Cornell University in New York, NY, USA
I would consider financing your transaction with private credit. I would be happy to discuss the details of your transaction and the options you may have to pursue private credit financing. Please do reach out to me directly.
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