Thread by @SBA_Matthias

In this thread, I am going to explain how you can take advantage of the 'Silver Tsunami' in the SMB acquisition space by using a commercial loan broker for the financing process of your SMB acquisition 🧵

#sba #smb #acquisitions #entrepreneurs #independentsponsors

1 - Historical Backdrop

➡️ Trillions of dollars of businesses will change hands within the coming decades. Many of you have read threads on this topic from @SMB_Attorney @girdley @Codie_Sanchez & others

2 - Financing the Acquisition

➡️ One of the factors that goes into the process of buying a business is acquisition financing. You have 2 options with this: DIY approach or working with a commercial loan broker.

3 - DIY Approach: Explained

➡️ The "DIY" approach with SMB acquisition financing is very much what it sounds like - contacting lenders on your own to meet them & find one that will be a good fit for your deal.

4 - DIY Approach: Explained (cont.)

➡️ The downside of the DIY approach is 2 fold: 1) It takes substantial time on your part as a searcher & 2) It is difficult to know if you are A) getting the best debt terms, or B) if the bank you are working with is more conservative than SBA

5 - The Benefits of a Loan Broker

➡️ Save Time: Loan brokers (for example @PIONEERCAPADV) know which bank(s) are the best fit for your deal
➡️ Subject matter expertise: Banks may ask for things that aren't hard & fast SBA requirements. Let your loan broker be the 'best cop'

6 - The Benefits of a Loan Broker (cont.)

➡️ Accelerating the underwriting process
➡️ Accelerating the closing process
➡️ Getting your deal in front of the correct bank faster
➡️ Avoiding overly conservative underwriting which can kill your deal

7 - How Does The Loan Broker Get Paid

➡️ At @PIONEERCAPADV, I get paid a % of the loan amount after the loan closes & funds. My fee from the bank does not come from loan proceeds

➡️ Did you know that a significant amount of deal volume at top SBA banks comes from loan brokers?

8 - Downsides of Using a Loan Broker

➡️ If you're working with @PIONEERCAPADV, knowledge will be shared with you that will empower you. Some banks don't like this.

➡️ Specific banks like Wells Fargo don't pay brokers, so I don't currently work with them.

9 - What's the Catch?

➡️ The answer to this question is that there is none.
➡️ I have helped searchers with low 6 figure NW's close on multi-million deals, sometimes with 5% cash down.
➡️ I can save you time in underwriting and closing and avoid overly conservative underwriting

10 - Concluding Thoughts

➡️ If you enjoyed this thread, please feel welcome to RT, comment, or follow me at @PIONEERCAPADV. I tweet about all things relating to business acquisition financing and SBA