Search with Claims Experience Under LOI: Public Adjuster Firm – Seeking Feedback, Lender Experiences & Alternatives

April 12, 2025
by a searcher from University of Miami - School of Business Administration in Miami, FL, USA
Hi Searchfunder community,
I currently have a Public Adjuster (PA) firm under LOI and would love to hear from others who have explored or acquired businesses in this space. I have been in the forensic accounting space my entire career and much of that within the Insurance space doing mostly business interruption claims.
The business is healthy and profitable, with solid SDE and claim history, but I’ve hit a few roadblocks—primarily with financing. I initially approached Live Oak Bank (who I know is a go-to SBA lender for many), but they declined to proceed solely because it's a PA business. Apparently, it's a firm-wide policy not to lend to public adjusting firms, which was unexpected.
So I’m reaching out to this group for a few things:
1. **Has anyone here acquired or evaluated a Public Adjuster firm?** Would love to hear about your experience—pros, cons, surprises.
2. **Any SBA-friendly lenders who *will* underwrite PA firms?** Ideally looking for a lender familiar with service businesses and open to regulated industries like this one.
3. **Alternatives to SBA?** Considering seller financing or non-SBA term loans as a potential fallback, but open to creative ideas.
4. **Red flags or key diligence areas I should focus on in PA acquisitions?** Especially related to regulatory risk, client churn, or working capital traps.
Appreciate any insight from those who’ve walked this path—or passed on it—and would be happy to reciprocate on other deal types I’ve looked at. Thanks in advance!
in Falmouth, MA, USA
in Miami, FL, USA