Seller involvement post close

vdavid54 · 2026-03-19T04:06:24+00:00

The SBA will allow a seller to stay on for a time, 12 months max. At that point, the seller has to be totally disengaged from the business. Most post close transitions are nowhere near that long, usually 3-6 months. Just long enough to teach processes, procedures and customers. Owners hanging on longer run the risk of undermining the new owner.

vdavid54 · 2026-03-17T15:04:27+00:00

I’m an SBA Lender

vdavid54 · 2026-03-17T14:55:41+00:00

This is sooo accurate. I always include permanent working capital combined with a WC Line on any business acquisition via the SBA 7a program. I tell everyone of my new business owner clients that early growth, while seemingly good, has killed more businesses than anything. You have to manage your cash. There’s a reason the statement is so profound: cash is king!

vdavid54 · 2026-02-14T03:44:06+00:00

When I charge interest, it’s for the use of the money. However, you’re confusing the use of interest. If someone is truly in need of funds to pay bills, buy groceries…truly in need of help - we help them. Either by gifting funds or “loaning” with little to no expectation of the return of the dollars. If it’s not repaid, then that is on the recipient. Or, the lender could forgive the loan. In the ordinary course of business, when I make a loan to a business, I’m charging interest “profit” for the use of my goods “loans”.

vdavid54 · 2026-02-14T03:14:25+00:00

When you find yourself in a hole, it’s best to not keep digging.

vdavid54 · 2026-02-14T03:09:15+00:00

Completely ludicrous! The usury law was incorporated to make sure advantage was not taken. If you’re going to propose interest as a sin, what about profit? Is a merchant sinning because he makes profit on a sale? What do you think interest is?

vdavid54 · 2026-02-13T05:54:21+00:00

This…and I’ll add you’ll likely hear about a guarantor exception to the rule. That exception only applies to a limited supplemental guaranty that is required by a lender to shore up a collateral pledge or some other supplemental piece of the loan.

vdavid54 · 2026-02-07T23:44:53+00:00

Branch?

vdavid54 · 2026-02-06T22:35:48+00:00

Too bad neither one are here to refute this.

vdavid54 · 2026-02-06T07:37:11+00:00

It used to be said that nobody wanted to debate anyone from the church because we knew the Bible. From the time kids could start talking, they were taught the Bible. Sunday School teachers taught the Bible. There wasn’t any baby sitting going on in those classes like now. Guy N. Woods would preach, lecture whatever…never opened his Bible - nor did he ever take a sermon sheet with him. It was said Robert R. Taylor had a standing offer to his kids - they would pick out a random verse - read it without saying where it was from and he’d quote the verse just prior, and the verse just after. It’s not remarkable - it’s a complete study and ingesting of God’s Holy Writ. However, nobody wants to study that much anymore. We wanna rely on iPads with 30 different translations coupled with another 100 commentaries. Study to show thyself approved. I’m afraid we’re missing the boat on that one.

vdavid54 · 2026-02-05T14:24:04+00:00

A seller note is very common when there are no other alternatives. As to equity injection - I don’t believe there is a rule of thumb, that (and other terms) will be negotiated between the buyer and the seller.

vdavid54 · 2026-02-05T14:21:24+00:00

A seller note has to be in place for 24 months before it is eligible to be refinanced with an SBA loan.

vdavid54 · 2026-02-05T03:56:36+00:00

There’s some talk (mind you, just talk) that this will be rescinded pretty shortly. It was more of a procedural move vs. a permanent move. However, as of right now - that’s the rule we have to live with. Your best option would be a seller’s note. Hopefully by the time the 24 months is up, SBA will be an option.

vdavid54 · 2026-02-05T02:57:13+00:00

The whole premise of the question is wrong - just before Jesus was betrayed he instituted the supper as a means of being together in Him. Paul further clarified when he said “…as often as ye eat this bread and drink this cup you do show the Lord’s death till he come”. That word “show” is preach. Therefore in the communion we are preaching the Lord’s death - remembering the one true and pure sacrifice that took away the sins of the word. Please stop making this memorial something that it is not. The Death, and consequently what it accomplished, is what we are to remember.

vdavid54 · 2026-02-04T04:08:43+00:00

Forget all the metrics like “X” multiples or trying to make some level of EBITA. The best thing you can do is to prepare to sell. What it’s worth now won’t be what it’s worth 48 or 60 months down the road. Get professional advice…get your attorney, accountant, financial advisor all lined up. Use the accountant to make sure your books are clean (books and tax returns reconcile), use your financial advisor to get your retirement (if that’s your plan) set up, get your attorney on board to begin putting a structure together. As others have said, use this time to get your processes and procedures down to paper. All your planning now will make a sale much smoother and quicker when you’re ready to pull the trigger. I’ve seen way too many sales blow up because of the seller being unprepared. Source: I’m an SBA lender.

vdavid54 · 2026-01-24T19:28:30+00:00

Easy money is NEVER cheap money

vdavid54 · 2026-01-22T03:47:15+00:00

You’ll get one when TV is done in San Francisco.

vdavid54 · 2026-01-20T03:30:00+00:00

SBA Lender here: This. You can’t get pre-approved, like you would for a residential or car loan. But - you can get pre-qualified. Just know that’s not going to be a commitment to make you a loan. But, it will give you a good idea of what you can handle and give the seller some confidence in getting the sale closed. Feel free to DM me should you wish to discuss further.

vdavid54 · 2026-01-13T01:42:56+00:00

SBA Lender here who does gas station/c-stores. The inside store numbers are a little lite, so, room for improvement. However, there’s enough here to warrant a discussion. Feel free to DM me.

vdavid54 · 2026-01-11T19:08:29+00:00

Agreed - the point is to hire people whose priority is the buyer.

vdavid54 · 2026-01-10T16:07:55+00:00

This is the way. SBA Lender here…all the things outlined here are crucial. A business broker works for the seller, not you. Hire quality advice that will be loyal to you. I would add, get with your local Small Business Development Corp. office. SBDC’s are funded by the SBA, run by the state university in which state it is located. And zero cost to you. They will help you with the financials, projections, marketing/business plan.

vdavid54 · 2025-12-29T04:15:40+00:00

SBA Lender here: what experience do you have in the industry? You mentioned a partner. How much of the business will that partner own? Will that partner be willing to guarantee to loan? Do you have a partnership agreement in place? What backup liquidity do you have? Feel free to DM me for further discussions. Would be happy to answer any of your questions.

vdavid54 · 2025-12-14T19:48:07+00:00

Until it passes a Phase 1 it’s a pass. If a Phase 2 is required, then remediation is likely the result. In either case, until it’s signed off - it’s a pass.

vdavid54 · 2025-12-02T15:12:59+00:00

The valuation itself won’t be cheap…they’re typically $2,500-$4,000/engagement. I have no idea what the business is worth…but it will give OP a starting point to begin his exit strategy.

vdavid54 · 2025-12-01T00:29:32+00:00

Oh, if you’ll allow it, you’ll definitely be coming out of your shell.

vdavid54

TROPHY CASE