Structurally Beautiful, Operationally Fragile: Is 5% Down Worth the 3-Year Transition?
May 07, 2026
by a searcher from Hofstra University - Frank G. Zarb School of Business in Miami, FL, USA
Hi Everyone,
I have been searching full time since Nov'25 and a bit in 2024 took a pause for most of###-###-#### I have found an engineering company that I have submitted an LOI on this week and either I'm getting cold feet about it or that I think I won't be able to operate the business.
For example, my wife says its not realistic for me to commute to PA weekly to run the business which I know is frowned upon. I have been running my Airbnb and Real estate investing business from Europe for the past 7years without issues. So to travel to PA weekly doesn't seem to be an issue in my eyes.
I just watched @redacted replay about Claude and he mentions "search fatigue" which is real in the ETA space and I can't really tell if I'm just jumping at this deal bc of "search fatigue" or it actually makes sense. I figured I'd drop some info here to get some feedback from my peers in the space.
Also, I have not worked in a professional setting for over 10years. I don't think I can prepare for an office setting and will just need to dive in with any acquisition and get my hands dirty.
High level Info:
Engineering Firm @ $2.65M - $880k SDE
3 owners all wanting to exist after 3 years
78% SBA; 5% 10yr standby; 12% 10yr seller note 3 yr standby; 5% buyer equity
Structure is ideal since I'm only putting in 5%. Since its high leverage and I need to replace the 3 sellers during transition, about $150k is left of the $880k in Yr 1 & 2. (this jumps to closer to $500k after year 3). The company has 2-3 employees and the plan is to hire staff and senior staff to replace the sellers within the 3 years.
This company goes against a lot of the "don't" in the ETA space.
Location is PA and I reside in FL
Sellers are the business and we have a 3 year transition period. This business won't trade unless a buyer agrees to this.
Licensing risk - not high risk as NY or CA. PA allows employees to hold the license.
Existing client relationships can be at risk post close or post seller transition
Limited younger engineers entering the workforce
Some green flags
Fragmented industry - ideal for rollups
Ideal structure with seller financing
Barriers to entry
Long transition plan
B2B services
Appreciate the feedback in advance.