Buying $1.5m of Earnings Without an SBA Loan

Today's story shows you how to buy a business without the benefit of the sba. Justus Luttig is a South African national and he didn't yet have his US Green card when he was buying the two trades businesses in Texas that he planned to consolidate into one. So he couldn't use SBA debt for these acquisitions, which at 1.5 million of pro forma earnings was otherwise in the sweet spot for an SBA loan.

So we unpack how justice got the deal done with seller rollover, seller notes, investor equity and a convertible note. That last instrument is not common in our world. Listen for what it means and why it clinched the transaction.

Also listen for Justus's thoughts on the first two years of his ETA journey when he worked as CEO of a trades business that he intended to acquire. Working with an owner seller to first run the business with the understanding that you'll later acquire it is an appealing model for many reasons. I've had offline conversations about it and you've heard flavors of it on Acquiring Minds.

But a lot of stars need to align for that model to play out in reality the way it looks on paper. In Justus's case, he did not end up buying that business and his reflections here are valuable. Okay, here he is Justus Luttig, owner of Copeland Home Services Webinars Today, Thursday, SBA loan broker Heather Anderson will host a webinar on the new $10 million limit for SBA loans.

You may have seen that eligible borrowers may now combine SBA 7A and 504 loans for for up to $10 million in SBA backed financing, doubling the previous cumulative limit. Heather will lead a webinar on these newly expanded lending limits and what those changes mean for you, if anything. That is today, Thursday, May 28, noon Eastern.

Link to register is right at the top of this episode's show notes or on the Acquiring Minds homepage. Acquiringminds Co. Welcome to Acquiring Minds, a podcast about buying businesses. My name is Will Smith.

Acquiring an existing business is an awesome. Opportunity for many entrepreneurs and on this. Podcast I talk to the people who do it.

Buying a small business sounds simple. Find a company due diligence. Get a loan close. In reality, you wear every hat just to get the deal done and then the moment you close, you have to throw those deal making skills out the window and learn how to operate.

You shouldn't have to rebuild this infrastructure from scratch and you definitely shouldn't do it alone. That's why Walker Deibel created Acquisition Lab. What started as an accelerator has expanded into A complete ecosystem for acquisition entrepreneurs.

Over six years, the lab's 1200 members have acquired over a billion dollars in businesses. The Lab puts everything under one roof. An active community, deal reviews, post close services and a dedicated fund helping experienced operators buy larger businesses.

If you're serious about buying a business, come see why Lab members have a 40% success rate. Learn more in the show notes or@accentlab.com acquiringminds. Justus Luttig, welcome to Acquiring Minds.

Hey Will, great to be here. Thanks for having me.