Do you think SBA will agree to this deal?

intermediary profile

June 02, 2025

by an intermediary in Miami, FL, USA

Hey Everyone, so I have a tech-enabled service business, and I have a buyer interested in buying just the "service part" of the business, and licensing out the tech from a third company. The thing is that with all the tech expenses, the company shows very little profit, but once that's carved out, the company shows profit of $750k/year, and it's possible to use off-the-shelf tech for around $50K a year, which is what the third party will charge the acquirer. Do you think that the SBA will be ok with saying that in that case the company's potential profit without the tech is $700K and loan accordingly? or will it only go based on historical raw profits?
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Reply by a lender
from University of Missouri in Denver, CO, USA
I think you could potentially look at this as a carve-out where if you have a CPA verify the financials and they can be separated you may be able to get the deal done. It just depends if these can actually be separated from each other. If you ran this business with low profits because of the expensive tech and it could have been done cheaper, why didn't you do that? I think there is a possibility here though to look at it as an addback or a carve-out.
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I concur with Sean. It is possible to do it with a carve-out. You would probably need both CPA financials as well as possibly a QofE to get a lender comfortable. Happy to have a discussion if you like. You can reach me here or directly at redacted
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