Financing a 9 million acquisition - self funded searcher

searcher profile

December 29, 2023

by a searcher from Florida Institute of Technology in Salt Lake City, UT, USA

I am a self funded searcher, i am looking at a company which is valued at 9 million dollar, and has attractive earnings/cashflow, where i can pay back 100% in 3 years or less - if i don't take a pay., The seller is willing to carry 15% note, and i can put in 10% down. This is a situation where the traditional SBA 7(a) loan would not cover the total cost of acquisition. Is this a deal breaker or still should pursue this dream. I am sorry , i tried to search the forum for an answer, and nothing would pop up.

Break Down:
- Selling price - 9 million
- Down payment###-###-#### K (*10%)
- Sellers note###-###-#### million (15%)
- Loan required###-###-#### million ( have to figure out the funding)

Your help is greatly appreciated and would love your input on the best way to approach this.

Cheers

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We are happy to take a look. As mentioned above, you can do an add-on loan with SBA financing called a "pari Passu" where the lender does more debt above $5 million without the government guarantee. There may also be some other ways to creatively structure a deal. You can reach me here or directly at redacted We are a commercial loan brokerage shop with over 500 funding partners. Good luck.
commentor profile
Reply by a searcher
from Virginia Polytechnic Institute and State University (Virginia Tech) in Blacksburg, VA, USA
You could probably get this done with SBA through Live Oak if you’re a strong borrower, if the deal terms make sense, and if you can bring more equity to the table or convince the seller to carry more paper.
commentor profile
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