New SBA partial acquisition

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August 30, 2023

by a searcher from Regis University in Denver, CO, USA

I'm very curious on this model of not acquiring all the shares. To me, it seems more like private equity investment.
I'd love to hear people's stories on their reasoning and models, and how owners react to these offers.

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Reply by a searcher
from Texas A&M University in Dallas, TX, USA
Of note, I’ve heard there is a 6 month look back, so even if they have 5% equity, but they formerly had 20%+ equity in the previous 6 months, it will require the seller to PG.

Can anyone confirm?
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Reply by a searcher
from Harvard University in Boston, MA, USA
I'm fairly certain if the old owner retains greater than 20% equity they will have to sign a PG on the new loan, so it's not quite the same as PE.
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