Establishing Deal Budget - Self Funded

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Harvard University - Harvard Business School
in Washington, DC, USA

1yr ago

Establishing Deal Budget - Self Funded

As a self-funded searcher planning to use personal funds + SBA + seller financing; how do you determine your deal budget? In other words, how do you calculate how much you can afford?

Will an SBA loan officer talk to you to help you with this if you have no deal in hand? If yes, what would they use to qualify you for a certain amount? I ask because - presumably - the financials and health of the business itself is a significant factor in this determination?

Given that seller financing is a variable, and that personal funds are finite, how would I calculate budget without pricing myself out of deals? i.e. for simplicity, lets say I have $10 personal funds. Assuming that the SBA loan requires 10% down, would my budget be restricted to $100? Would I be able to look at $200 deals if the seller puts loans me $10? Or more?

How much would you typically expect in seller financing?

Also, is there something I am missing?

Apologies if this is a bit "all over the place". I am just trying to educate myself.

Any help would be appreciated!

1 Like

350 Views

reply by a lender 1yr ago
from California State University, Sacramento in Seattle, WA, USA

Email me for links to attend our weekly office hours. We walk through all things SBA lending every WEDs. This will be a great start for you. redacted Structure Policy Process.

reply by a searcher 1yr ago
from George Mason University in Washington, DC, USA

^redacted‌ and ^redacted‌ has a great tool for this and tons of information on this topic. Check out their bootcamp. Made my SMB acquisition possible.