How Business Brokers Can Close A Deal Faster

Photo by Redd Angelo.

Susan Kite, Vice President of SBA Lending for The Brand Bank moderated a panel of SBA lenders for the GABB April 25 meeting.

She offers these suggestions to business brokers on ways to get a deal closed faster.

Get Seller Information as quickly as possible after signing a listing agreement. That information should include:

  • Last 3 years’ Federal tax returns (if sole proprietor, get Schedule C)
  • YTD interim statement to include Balance Sheet & Income Statement
  • Previous year’s interim statement of same period
  • Aging of Accounts Receivable and of Accounts Payable
  • Listing of all assets being sold – and their market value (with serial numbers for any asset valued at $5,000 or more)
  • Letter of Intent or Purchase Agreement

Manage Seller expectations

  • They will likely have to take a Seller Note of 10% to 15% of sales price
  • They will need to update Interim Financials and Agings every 60 – 90 days

Get Buyer information as soon as possible

  • Last 3 Years Federal Tax Returns – Personal and Affiliate
  • Recent Personal Financial Statement – give them form 413
  • Business Plan (good template is at
  • Financial Projections (monthly for Year 1 / Annually for Years 1-2)
  • Personal Information Form 1919

Manage Buyer expectations

  • Buyers will have to put in cash equity of 10% to 25% of sales price
  • They may have to pledge their home or other real estate
  • They will need to assign to the lender life insurance
  • A business acquisition loan process is not like buying a home – it may take longer than they expect.

Lender Info

  • Use a GABB Affiliate lender that knows business acquisition SOP rules
  • Get with a lender early and use them as a resource
  • Realize that to lenders, EBITDA is more important than SDE
  • All add-backs must be verified
  • Have your Seller and/or Buyer prepared with an organized application package
  • The process will be much faster when information is provided quickly when requested

For more information, contact Susan Kite, VP SBA Lending / The Brand Bank / / 770-595-9734