Evaluating Transition Risk w/ a 3-Person Partnership

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March 24, 2026

by a searcher from Southern Illinois University at Edwardsville in Troy, IL, USA

I'm evaluating a niche consulting firm. I am highly experienced in the space, so business-buyer fit is strong. There are 3 current owners who have jointly run the firm for 20 years. Two of them wish to stay on post close. One for ~2 years, and one indefinitely. A few questions: 1. How does SBA view a minority owner staying on post close? I know typically they do not want an owner around beyond 1 year, but not sure if that applies here. 2. How would you diligence the transition risk in this scenario? I am primarily concerned with the question of how willing are they to actually give up control to a new owner after running the show for 20 years? 3. Any thoughts on deal structure? I am already thinking an equity carry is obvious and am curious to hear from others with more experience.
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Reply by a lender
in Falmouth, MA, USA
Tim, feel free to reach out. I’ve worked across $500M+ in approved SBA deals and can help cover those questions. There are many nuances in the structure you described which, depending on the details, can impact your ability to execute. redacted
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Reply by a professional-advisory
from American University, Washington, D.C. in Lewiston, ME, USA
@redacted‌ is who you want to reach out to for this
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