HVAC Deal - SBA / Licensing

by a searcher from Harvard University - Harvard Business School

1 year ago

LOOKING FOR CREATIVE SUGGESTIONS.

I am currently under LOI on a HVAC Deal in NJ and beginning diligence this week. 

I just received a call from a banker stating that the SBA is "likely rolling back their previous announcement that previous owners are able to roll equity < 20% and not have to sign a PG". NJ requires a HVACR license to operate and the license holder has to be at least a 1% equity holder. The deal was going to be a stock deal where the owner retained 1% equity.

Looking for suggestions on whether:
1) The SBA is really changing their recent guidance on equity rolls
2) How to structure / fund / license this deal

4 likes
274 views
13 comments

searcher from Georgetown University

I'd recommend reaching out to Steve Mariani re SBA financing: https://diamondfs.com/about/

8 months ago | like reply | 0 likes

searcher from Samford University - Brock School of Business

Wow, this is a pretty big "gotcha" to be aware of. Following for any future updates and clarifications. Thanks everybody.

1 year ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Self Funded Acquisition: A few Things I Learned

Examples of self-funded searcher websites

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Investor seeking Self-Funded Search Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.