Any experience acquiring a passively owned business? How truly passive was it?

December 02, 2025

by a professional from Northwestern University - Kellogg School of Management in Arlington, VA, USA

Hi - I am interested in acquiring a passive asset, requiring no more than 10/hrs a week of my time after an initial heavier onboarding. I have an opportunity in mind that generates about $500k in revenue so I am concerned about "acquiring a job". Based on conversations with the owner, without seeing the business operating directly myself, I do believe the managerial tasks could be done in <20 hours a week. It is a commercial cleaning business that has employees operating the same clients and routes every evening so it is not extremely intense on scheduling. Mngr responsibilities come down to customer management, payroll, and occasionally picking up a mop if someone calls in sick. There is enough SDE to hire a part-time manager and still cover debt obligations and more. Does anyone have experience either 1) buying a "passive" business represented as owner is currently working###-###-#### hours a week, and 2) hiring a part time / fractional manager type to offload said "passive" duties. Thanks!

Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌, nice to meet you. Here is the simple answer. If you plan to use the SBA, its important to note a few things. SBA lenders expect the buyer to be fully involved in day-to-day operations. A business cannot be positioned as passive at underwriting. You can hire a part-time manager after closing if cash flow supports it, but the deal cannot be structured as absentee ownership. Lenders want to see you engaged and able to step in if needed. In commercial cleaning, most “passive” claims tend to break down during diligence when you review scheduling, staffing, customer issues, and employee turnover. It can work with the right manager, but you should still plan for active oversight. We have a lot of experience financing cleaning and facilities-service companies via the SBA. If you ever need help talking through a deal, I am happy to help. We work with all the major SBA lenders. The bank pays us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

Reply by an investor
from Virginia Polytechnic Institute and State University in Charlottesville, VA, USA

Hi Taylor - If you're still looking for feedback on this I'd be happy to share my experience. Just message me.

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