Thread by @SBA_Matthias

In this thread, I'm going to cover how to get your deal closed by year end as an SMB searcher 🧵

#sba #smb #acquisitions #entrepreneurs

1/x: Have an organized data room

➡️ Up-to-date financials for the target business being acquired
➡️ Corporate documentation for your business entity
➡️ Upd-to-date personal financial statement & last 3 yrs of personal tax returns for any 20% or more owner in the buyer group

2/x: Have a "Quarterback" for your ownership group

➡️ If you have multiple owners in your ownership group, there needs to be a "quarterback" point for communication with the bank
➡️ The quarterback responds to emails for the ownership group and helps streamline communications

3/x: Have a deal team experienced in SBA financing

➡️ M&A attorney that has done deals before in the small to medium sized business space
➡️ QofE provider that is responsive & works with your time-frame
➡️ Life & business insurance agent familiar with SBA requirements

4/x: Responsive Seller that will work with you

➡️ There are documents that a seller will be required to provide & sign as part of the SBA loan process. Pushback on any of these items wastes valuable time.
➡️ Tthere is also a business valuation that requires seller communication

5/x: Have a Business Plan & Projection

➡️ These both take time. I get it. If you have a lackluster version of either, your loan request won't be on the "bullet train" through underwriting
➡️ You can hire someone to draft both if you need the help for either

6/x: Be Ready for "9 Innings in the Ring"

➡️ Every bank is fundamentally different
➡️ No 2 underwriters are alike
➡️ Depending on the bank that you're working with you might be asked the same questions multiple times. Be prepared & be patient.

7/x: Have a plan if the loan approval comes after your LOI expiration date

➡️ Banks aren't perfect unfortunately

➡️ They might drop the ball on you and delay the approval on your deal

➡️ Set expectations accordingly with your seller and use the bank as the "bad cop" if needed

I hope that you found this thread useful.

I tweet about all things related to SBA lending as well as pertaining to business acquisitions.

Please feel welcome to re-Tweet if you found this thread helpful.

#sba #smb #acquisitions #entrepreneurs

Thanks, Robert!

If you or someone that you know has a deal to close by 12/31, I'm ready to help! 🙂