Acquisition Financing
Finance Your Next Business Acquisition the Right Way
Buying a business is one of the most significant financial decisions you'll make. We structure acquisition financing that gets deals closed — with the right combination of SBA loans, conventional debt, and seller financing.
Acquisition Types We Finance
Acquisition Financing Programs
SBA 7(a) Acquisition Loans
The most common financing for business acquisitions. Up to $5M, 10-year terms, competitive rates. Requires 10% buyer equity injection and seller note in many cases.
Conventional Acquisition Loans
Bank and non-bank financing for larger or more complex acquisitions. Faster than SBA in some cases. Typically requires stronger financials and larger down payment.
Seller Financing + Senior Debt
Combining a seller note with senior bank debt reduces the cash required at closing and aligns seller incentives with post-acquisition performance.
Asset-Based Acquisition Financing
Financing structured around the acquired business's assets — receivables, inventory, equipment. Useful when cash flow alone doesn't support the full purchase price.
Acquisition Financing FAQs
How do I finance a business acquisition?
Most business acquisitions are financed with a combination of buyer equity (typically 10–20%), senior debt (SBA or conventional loan), and sometimes seller financing. The right structure depends on the purchase price, the business's cash flow, and the buyer's financial profile.
What does the acquired business need to qualify?
Lenders evaluate the target business's historical cash flow (typically 2–3 years of tax returns), profitability, customer concentration, industry risk, and the reasonableness of the purchase price relative to earnings.
How much do I need to put down to buy a business?
SBA 7(a) acquisition loans typically require 10% equity injection from the buyer. Conventional acquisition loans often require 20–30%. Seller financing can reduce the cash required at closing.
Can I use an SBA loan to buy a business?
Yes. SBA 7(a) loans are one of the most common financing tools for business acquisitions. They offer up to $5M, 10-year terms, and competitive rates. The business must be for-profit, the buyer must be a U.S. citizen or permanent resident, and the acquisition must meet SBA eligibility requirements.
How long does acquisition financing take to close?
SBA acquisition loans typically take 45–90 days from application to closing. Conventional acquisition financing can close in 30–60 days. Bridge financing is available for time-sensitive transactions.
Found the Right Business to Buy?
Apply today or call Gary Hughey to discuss your acquisition and structure the right financing to get it closed.