Frequently Asked Questions

I'm pre-qualified by a few very large and active SBA lenders and have a great handle of their underwriting process and requirements. The SBA lenders will look at the company's income statements and tax returns from the previous 3 years. They will determine the average profit and subtract from it a fair market salary for both the current owner and the incoming buyer. Then they will take the net amount and verify that there is enough margin to cover the debt payment. The length of an SBA loan is usually 7 or 10 years. The bank will provide up to 80% of the purchase price and the buyer must contribute at least 10% down.

About a total of 3 months. First, we'll meet a few times and get to know each other! If it seems like a good fit, we can sign an NDA to keep everything confidential. Then, after reviewing basic info about the business, including a few years of P&L statements, I would issue a non-binding letter of intent (LOI). After this, we'd review the business in-depth (tax returns, contracts, backlog, payroll, etc). In the meantime, I'd issue a formal purchase agreement and apply for financing. It takes 60-75 days from LOI to closing.

at your door and asked the current version of you, “I want to learn how to run and operate this business just like you have! Can you teach me based on your 20-30 years of experience?” That’s who I am today, proverbially “knocking” on your door, looking for a mentor. Imagine how much you would have valued that wisdom and guidance when you were first starting out.

Only 10% of startups make it past year 5. It takes a lot of hours, stress, and sacrifice to start a company, weather the ups and downs, stay the course and build it up over the years. I have a ton of reverence for what you’ve accomplished. My goal is to work with you on a smooth and gradual transition, learn from you as mentor, continue your legacy of service and take care of your staff.

That’s completely understandable! In our industry, sellers usually stay involved in the business for another 2-3 years post-sale, sometimes longer. In some instances, the seller may also retain some equity in their business so they can benefit from its potential future growth. Actually, this is the perfect partnership between buyer and seller. You, as the seller, can take some of your chips off the table, gradually pass the day-to-day operations to the buyer and work together on strategy going forward.

Yes, I agree. However, there are countless examples of people without a background in AEC who can effectively run an AEC business. This is why I’m focused on finding a long-time owner who I can learn from, and do not mind the specific service(s) their company provides. However, being an engineer with a passion for infrastructure, I’ll have a deep love and appreciation for the company’s services.

Business owners are consistently making a positive impact on the world. By taking care of their employees and providing a place to do meaningful work. By designing, building or repairing our infrastructure to be safe, durable and sustainable. By supporting good causes and mentoring youth in the local community. These are all things that I strive to do.