SBA Financing Optimization for Search Fund Acquisitions

Many searchers focus on finding the right business but overlook optimizing their financing structure. Here are 5 key strategies that can save 2-3% on your cost of capital: - 1. SBA Pre-Qualification: Confirm eligibility before LOI to strengthen your offer. - 2. Optimal Debt/Equity Mix: 90% SBA financing vs. traditional bank debt can improve IRR by 200+ bps. - 3. Working Capital Facilities: Plan for post-closing growth capital needs upfront. - 4. Seller Financing Integration: Structure seller notes to complement, not compete with SBA terms. We've helped searchers structure deals that maximize returns while minimizing financing risk. Each deal is unique, but these principles apply broadly.What financing challenges are you facing in your search? Happy to discuss specific situations!