Should I do this deal?

May 07, 2026

by a searcher from Hofstra University - Frank G. Zarb School of Business in Miami, FL, USA

Hi Everyone, I have been searching full time since Nov'25 and a bit in 2024 took a pause for most of###-###-#### I have found an engineering company that I have submitted an LOI on this week and either I'm getting cold feet about it or that I think I won't be able to operate the business. For example, my wife says its not realistic for me to commute to PA weekly to run the business which I know is frowned upon. I have been running my Airbnb and Real estate investing business from Europe for the past 7years without issues. So to travel to PA weekly doesn't seem to be an issue in my eyes. I just watched @redacted‌ replay about Claude and he mentions "search fatigue" which is real in the ETA space and I can't really tell if I'm just jumping at this deal bc of "search fatigue" or it actually makes sense. I figured I'd drop some info here to get some feedback from my peers in the space. Also, I have not worked in a professional setting for over 10years. I don't think I can prepare for an office setting and will just need to dive in with any acquisition and get my hands dirty. High level Info: Engineering Firm @ $2.65M - $880k SDE 3 owners all wanting to exist after 3 years 78% SBA; 5% 10yr standby; 12% 10yr seller note 3 yr standby; 5% buyer equity Structure is ideal since I'm only putting in 5%. Since its high leverage and I need to replace the 3 sellers during transition, about $150k is left of the $880k in Yr 1 & 2. (this jumps to closer to $500k after year 3). The company has 2-3 employees and the plan is to hire staff and senior staff to replace the sellers within the 3 years. This company goes against a lot of the "don't" in the ETA space. Location is PA and I reside in FL Sellers are the business and we have a 3 year transition period. This business won't trade unless a buyer agrees to this. Licensing risk - not high risk as NY or CA. PA allows employees to hold the license. Existing client relationships can be at risk post close or post seller transition Limited younger engineers entering the workforce Some green flags Fragmented industry - ideal for rollups Ideal structure with seller financing Barriers to entry Long transition plan B2B services Appreciate the feedback in advance.

Reply by a searcher
in Jacksonville Beach, FL, USA

Hi Veeno. I work in engineering currently. There are some major red flags. You nailed it with “they are the business.” I am happy to share my thoughts. Let’s talk on the phone.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Veeno, great question. If they have a physical office you need to be in every day and plan to commute, that commute will wear on you if you are not used to doing it. It will also wear on your family. The fact you need to replace three of them is a huge risk. 17% in seller notes is usually a good incentive, but when you break that down and it is about 4% for each owner, that is a lot less of an incentive for the sellers. The other issue you will run into is with SBA 7A financing you cannot guarantee the sellers more than a 1-year employment agreement, so your three-year transition plan is not going to work for lenders. Being a technical industry and having three sellers is going to be hard to get lenders comfortable with unless a couple of the sellers are not active in the business. Do you have a background in Engineering? I do not think this is an opportunity that would be easy to finance just based on what information you have provided on the surface. I would be more than happy to have a more in depth conversation from a lender / financing perspective. You can reach me here or directly at redacted We also offer a complimentary review of opportunities and would be happy to look at the deal in more detail. Good luck with your decision.

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