Acquiring Minds SBA Lender Roundtable: State of the Market
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Aug 15, 2024 Three top experts in SBA lending share insights on the current market dynamics as of summer 2024. They discuss the growing importance of personal guarantees and the rising equity in deals. The conversation highlights the most profitable industries, such as HVAC and senior care, while cautioning against challenges in landscaping. They explore the complexities of financing, including forgivable seller notes and the impact of new SBA rules. Trust between buyers and sellers is emphasized as crucial for successful transactions.
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Market Dynamics
Despite rising interest rates reducing buying power, valuations have not significantly adjusted due to high demand from buyers. This dynamic creates challenges for searchers in negotiating prices.
Choosing Lenders
Seek lenders with experience in SBA lending, as not all lenders understand the nuances of search deals. A lender's familiarity with your type of transaction can prevent future complications.
Seller Notes
Forgivable seller notes have become more common, providing flexibility in deal structuring. This trend helps address valuation gaps and builds trust between buyers and sellers.