Financing diligence

SBA Acquisition Financing

SBA financing can make an acquisition possible, but lender approval and buyer investment diligence answer different questions.

Buyer lens

Stress debt service against normalized earnings after replacement labor, maintenance CapEx and working-capital needs.

Seller lens

Prepare lender-ready financial support without assuming lender acceptance proves the buyer will accept the same valuation assumptions.

Why it matters

  • Loan approval addresses credit and program requirements, not all operating risk.
  • A business can qualify for debt while leaving the buyer with a thin cash cushion.
  • Financing momentum can pressure buyers to ignore unresolved diligence.

Evidence to reconcile

  • Normalized cash-flow bridge
  • Debt-service model
  • Tax returns and financials
  • CapEx/working-capital needs
  • Lender-required documentation