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SBA Loans and how they make business acquisitions easy

Business Buying Strategies from The Dealmaker's Academy

Release Date: 11/09/2023

#333 Legal Pitfalls of Business Acquisitions show art #333 Legal Pitfalls of Business Acquisitions

Business Buying Strategies from The Dealmaker's Academy

In this week’s episode, Jonathan sits down with his long-term legal partner, John Andrews, for a masterclass on the legal do’s and don’ts of buying a business. With over 250 deals completed for Dealmakers clients and three decades of M&A experience, John shares the essential legal knowledge every buyer needs — especially if you’re serious about avoiding costly mistakes. Whether you’re preparing for your first deal or scaling up your acquisition strategy, this episode gives you the legal edge to navigate deals with confidence. What You’ll Learn in This Episode: Why a...

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Business Buying Strategies from The Dealmaker's Academy

In this episode, Jonathan does something a little different: a live Q&A session with listeners and aspiring dealmakers. You’ll hear real, unscripted questions from entrepreneurs across the UK (and beyond) – and Jonathan’s direct, practical answers drawn from decades of dealmaking experience. In This Episode Why traditional “day-one finance + deferred consideration” deals are becoming outdated. The big difference between the “vanilla” advice on YouTube and the full-flavour strategies inside Mastermind. Should you start with a small (£500k turnover, 5 staff)...

info_outline #331 From Redundancy to £1 Million: Neil’s Journey from Scratch to 650 Clients show art #331 From Redundancy to £1 Million: Neil’s Journey from Scratch to 650 Clients

Business Buying Strategies from The Dealmaker's Academy

In this week’s episode of Business Buying Strategies, Jonathan speaks with Neil — a former accountant who lost his job in early 2020 and built a million-pound business in just five years. Neil shares how he went from doing the odd tax return to running a team of 12, managing 650 clients, and completing three acquisitions in just two years. You’ll hear how he turned redundancy into opportunity, overcame the chaos of COVID, and used acquisitions — not marketing — to scale rapidly and strategically.   What You’ll Learn in This Episode: How Neil built his business from scratch...

info_outline #330 Fast-Tracking Business Acquisitions: Lessons from Success Stories show art #330 Fast-Tracking Business Acquisitions: Lessons from Success Stories

Business Buying Strategies from The Dealmaker's Academy

In this week’s episode of Business Buying Strategies, Jonathan shares valuable insights from Inner Circle members who have successfully purchased businesses. The episode considers the transformative power of a single acquisition, featuring examples such as Nick's printing business expansion and Jas's recent ventures. Jonathan stresses the importance of validating the business model to ensure sustainable growth. Lessons include the importance of empowering employees, maintaining quality management, and the strategic considerations of business consolidation and rebranding. It’s an episode...

info_outline #329 Insights from Seasoned Entrepreneurs: The Inner Circle Discussion Panel show art #329 Insights from Seasoned Entrepreneurs: The Inner Circle Discussion Panel

Business Buying Strategies from The Dealmaker's Academy

In this week's episode of Business Buying Strategies, we are treated to a special Q&A session from the annual Marbella retreat featuring a panel of seasoned members from Jonathan's inner circle group.   These accomplished entrepreneurs, who have collectively acquired dozens of businesses, discuss their experiences and share invaluable tips on acquiring businesses with minimal capital outlay.    The panellists, including Hari, Simon, Tim, Jon, and Ben, dive deep into topics such as the importance of getting started, whether to take a targeted or scattergun approach, managing...

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Business Buying Strategies from The Dealmaker's Academy

Insights from an Expert Accountant In this episode of Business Buying Strategies, Jonathan introduces Jeff, an accountant he has worked with for nearly 13 years.  Jeff shares invaluable tax-efficient strategies to help business owners maximise their savings and minimise tax liabilities. Key topics discussed include the benefits of family investment companies, approaches for handling inheritance tax, rewarding key employees using partnerships, using service companies owned by family members, and leveraging pensions for tax benefits. Jeff explains how to structure deals in a way that...

info_outline #327 Masterclass on Financial Due Diligence show art #327 Masterclass on Financial Due Diligence

Business Buying Strategies from The Dealmaker's Academy

In this episode of Business Buying Strategies, Johan Gory, managing director of OnPoint Accounting, offers an in-depth masterclass on financial due diligence.   Johan explains the importance of involving a due diligence expert, common pitfalls that cause buyers to overpay, and techniques such as the 'source of funds' trick to uncover the real financial health of a business.   He also discusses the relevance of goodwill, the challenges and opportunities in buying distressed businesses, and the role of director's loans in business valuation. This episode is a must-listen for anyone...

info_outline #326 Zero to Multi-Million: John's Business Acquisition Masterclass show art #326 Zero to Multi-Million: John's Business Acquisition Masterclass

Business Buying Strategies from The Dealmaker's Academy

In this episode of Business Buying Strategies, Jonathan talks with John, a long-time acquaintance and experienced professional in mergers and acquisitions.   John shares his journey of acquiring six businesses with a combined annual revenue of 6 million pounds, detailing the various strategies and tactics he employed, including using the cash reserves of the acquired businesses to fund their purchases.   He emphasises the importance of accountability, transparency, and understanding the financial aspects of a business to ensure successful acquisitions. John also highlights the value...

info_outline #325 Mastering Personal Branding and Negotiation in Business Acquisitions show art #325 Mastering Personal Branding and Negotiation in Business Acquisitions

Business Buying Strategies from The Dealmaker's Academy

In this special edition of Business Buying Strategies, Jonathan Jay speaks live from the Deal Makers Retreat in Marbella, Spain, talking about the importance of personal branding when negotiating business deals. He explains how to present yourself to business owners, emphasising the significance of the first impression and maintaining credibility throughout the negotiation process. Jonathan shares practical tips and anecdotes, underlining that knowing the buying process thoroughly and having clarity of intent are crucial for success. Listeners are encouraged to adopt a calm, professional...

info_outline #324 David's Journey From SME to Multi-Million Pound Buy-and-Build Success: show art #324 David's Journey From SME to Multi-Million Pound Buy-and-Build Success:

Business Buying Strategies from The Dealmaker's Academy

In this week's episode of Business Buying Strategies, Jonathan interviews David, a successful entrepreneur who shares his incredible journey of transforming a small domiciliary care business into a £20 million revenue enterprise over the course of four years through an aggressive buy-and-build strategy.   David details his early days, the moment of insight that led to his first acquisition, and how he managed to acquire businesses with little to no upfront cash. He also emphasises the importance of having a strong management team, discusses integration challenges, and provides insights...

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Did you know there is a government-backed lending scheme in the US that allows you to borrow up to 100% of the cost of acquiring a business?

In this episode of Business Buying Strategies, Jonathan talks to Ray Drew from Fund-Ex Solutions and an expert in SBA lending about the scheme and how it has become a useful way of buying a business without using any of your own money.

During the interview, Jonathan and Ray discuss how SBA lending works, why it was set up by the government, the various options available and how to apply.

If you’re a listener in the US and are not aware of this scheme, you need to listen to this episode. 

Even if you’re not US-based, it is worth listening as Ray reveals why the trend of Baby Boomers retiring and selling their businesses presents one of the biggest opportunities in a generation for people looking to acquire a business. 

Here are the key highlights:

01:18 - How Ray became an expert in SBA loans and how the landscape has changed in the last few years

01:54 - Why SBA lending was developed and how it is currently being used 

02:52 - How SBA 7(a) funding works

04:26 - How to apply for SBA funding 

05:02 - Why business experience isn’t essential for a loan (and what other experience and factors will help)

07:15 - What options are available for raising a deposit

10:36 - The role of the seller during the process and how SBA lending benefits them

13:30 - Key conditions around the loan terms and conditions you need to know

17:40 - The importance of negotiating working capital for the acquired business

21:24 - Applicant and business eligibility for secure borrowing

25:52 - How to get Ray’s help when seeking an SBA loan

Here is what you will discover…

  • Why SBA 7(a) programme is “like a Swiss Army knife” of lending for small businesses in the US
  • How the “Silver Tsunami” of retiring Baby Boomer business owners will create an incredible opportunity for business buyers in the next 12 months
  • Why business acquisitions now make up 80% of Ray’s funding activity (a huge increase on previous years)
  • How much loan-to-value you can expect using SBA funding and the maximum financing level available
  • Why the SBA programme has created an exciting opportunity to build wealth for individuals who traditionally would not have considered buying a business
  • How a buyer can access up to 100% deal financing by demonstrating strong sector experience or transferable skills
  • How buyers are protected through government-mandated interest rates (you never pay about a certain fixed interest rate for your lending)
  • Who is eligible for SBA 7(a) funding and what businesses are specifically excluded

Notable quotes

“The business plan is just the tip of the iceberg. It’s what you would call a full doc program, but the business plan doesn’t have to be too crazy because it’s for an existing business.”

“We look for relevant experience. Most of all, we look for management experience. Experience managing people, managing a budget, managing a P&L, things like that are going to transfer over to just about any business.”

“So a credible buyer for that type of business really has the potential to buy or pay up to $5 million for a business.”

Episode links

 

** Looking for a great acquisition lawyer in the UK? Use mine! **

If you are looking for a lawyer in the UK to help you get the deal over the line, then use my own lawyer, John Andrews. You can phone his office at (0345) 2412494 or email him at [email protected].

Ready to get started?

Here’s how you can start your business buying journey…

Watch my FREE Dealmakers webinar training:

https://www.dealmakerspodcast.com

Get a FREE copy of my book:

https://www.thedealmakersacademy.com/free-book-giveaway

Join the Business Acquisition FastTrack course

https://www.thedealmakersacademy.com/quick

Already bought a business?

if you've already bought a business, you should be part of my Inner Circle group where we discuss raising capital, integration management, and exiting. Email Maria at [email protected] for more information.