Let’s Buy a Business
SBA Lending Pitfalls with Jared Johnson
Jan 15, 2025
Jared Johnson, an experienced SBA lender and business acquirer, shares his insights on the complexities of SBA lending and acquisitions. He discusses transformative changes in the industry post-pandemic and offers advice on what makes a perfect deal. Jared reveals what happens when deals fall apart at the last minute and emphasizes the importance of honesty and transparency in transactions. He also shares a fascinating example from an unconventional business model—a professional lice removal company that boasts impressive margins.
28:37
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The landscape of SBA lending has evolved significantly, allowing for larger transactions post-2019 due to increased buyer interest and market changes.
- Thorough due diligence is now crucial in business acquisitions, with buyers increasingly hiring professionals to ensure fair pricing and aligned transactions.
Deep dives
Changes in SBA Lending and Business Acquisitions
Over the years, significant transformations have occurred in the landscape of SBA lending and business acquisitions. Historically, it was uncommon for deals to exceed $2 million, with many transactions being smaller and requiring perfect financials. However, since around 2019, the market has shifted, allowing for larger transactions due to an influx of new buyers, many of whom are searching for businesses through formalized funds. This evolution has been further accelerated by the COVID-19 pandemic, which led to many individuals reevaluating their career paths, together with the retiring baby boomer generation, resulting in increased acquisition opportunities.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
