Business acquisitionsBuy a business.
SBA acquisition financing, with M&A judgment built in.
Know what you’re buying, what the business can support and how the deal should be financed. We connect acquisition analysis with SBA credit work before you commit—and stay involved through closing.
AWG Capital Advisory is not a lender. Financing is subject to lender underwriting and approval.
Acquisition judgmentKnow what you’re taking on.
Understand the earnings, purchase terms and financing together: what you can rely on, the cash you need and the issues worth resolving before you commit.
What are you really buying?
Seller add-backs, customer concentration, owner dependence and margin trends can change the earnings you can rely on. We assess those risks before they become your obligations.
Does the price work after the loan?
We test the price against supportable cash flow, debt payments, working capital and deferred investment—including what remains for you after closing.
Will the agreed deal finance?
Your cash contribution, seller note, ownership terms and total project cost have to fit SBA requirements and lender credit. We review them together before the structure is fixed.
Through the credit lensIllustrative scenario
When the add-backs don’t hold.
- The situation
- The seller’s earnings include costs they say will disappear after closing. A major customer depends on the owner, and the buyer has budgeted for the down payment but little working capital.
- The credit question
- If some add-backs do not hold, can the business still support the debt—and what would need to change in the price, seller note or cash contribution?
- AWG’s role
- We would test the earnings and transition assumptions, model the full capital need and assess the SBA financing structure. We would explain what needs to change before lender outreach—and when the numbers do not support proceeding.
See what rejected add-backs change
Hypothetical assumptions, not a completed AWG transaction, loan quote or eligibility decision.
Assume $360,000 of earnings before seller add-backs, $300,000 of annual debt payments and a $60,000 annual operating/reinvestment reserve.
| Annual measure | Seller’s view | After review |
|---|---|---|
| Earnings before add-backs | $360,000 | $360,000 |
| Add-backs included | $120,000 | $45,000 |
| Adjusted earnings before debt | $480,000 | $405,000 |
| Assumed debt payments | $300,000 | $300,000 |
| Cash after debt and $60,000 reserve | $120,000 | $45,000 |
Rejecting $75,000 of add-backs reduces modeled cash after debt and the reserve from $120,000 to $45,000. That can change what price and structure the buyer can support.
Before buyer compensation, income taxes and unexpected costs; collection and payment timing can change actual cash. Debt payments are assumed, not quoted. This is not a valuation or lender credit decision.
Client perspective
“He and I had many discussions about the target business, the deal structure and how to optimize the transaction for our benefit. His advice was always sophisticated, commercial, and focused on our best interests.”
Start hereBring us the deal.
Considering a target, or already under LOI? Start with the financing amount and timing. We’ll assess the business and the deal behind the request.
No documents needed to start. Requests of $500,000 and above begin AWG’s assessment; for other loan sizes, we introduce you to a trusted specialist financing partner.
Our processOne view of the business and the financing.
Goran Pavlovski is a Certified Merger & Acquisition Advisor with a banking and SBA credit background. We work alongside your attorney, CPA and diligence specialists to connect the purchase and financing decisions.
- 01
Assess
We review the target’s financials, your background and the proposed purchase terms.
- 02
Pressure-test
We test earnings, repayment capacity, operating risks and SBA eligibility.
- 03
Optimize
We refine the financing structure, prepare the credit memo and identify suitable lenders.
- 04
Execute
We help you evaluate lender terms and coordinate the financing through approval and closing.
FAQBefore you begin.
SBA 7(a) can support eligible business acquisitions and related financing needs. We assess the business, buyer and transaction structure together, with lender underwriting and approval required.
Program references: SBA 7(a): uses and eligibility · SBA acquisition and equity policy: Appendix 15
How does AWG help me buy a business with SBA financing?
We assess the acquisition and its financing together: the earnings behind the price, risks that could affect repayment, the full cash requirement and the proposed structure. We prepare the credit memo, identify suitable lenders, help you compare offers and coordinate the financing with your deal team through closing. You apply through the lender, which makes the credit decision.
Should I speak with AWG before signing an LOI?
Yes. Bring the available financials and proposed purchase terms. Early review can surface earnings, capital and financing issues while there is still room to address them in the LOI. We also work with buyers who already have a signed LOI.
What if the seller’s add-backs or asking price do not hold up?
We explain how changes to supportable earnings affect debt capacity, your cash contribution and the cash left after closing. We assess whether the price, seller financing, buyer equity or another part of the structure needs to change. If the numbers do not support proceeding, we say so.
How much money do I need to buy a business with an SBA loan?
For an initial acquisition, current SBA 7(a) policy requires an equity contribution of at least 10% of the total project cost, which extends beyond the purchase price. A lender may require more. Seller financing counted toward that contribution must meet specific requirements. Add-on acquisitions can follow different rules. We assess the contribution and the cash you would retain after closing.
How do you work with my attorney, CPA and diligence team?
Your attorney, CPA and specialist diligence providers handle legal, tax and formal quality-of-earnings work. AWG connects the commercial and financing implications of their findings with the acquisition structure and lender process. We help surface issues early and keep the financing work coordinated through closing.
Does AWG help with franchise acquisitions and add-ons?
Yes. We work on eligible purchases of independent businesses, operating franchise units and add-on acquisitions. A new franchise location has different startup and projection requirements; our complete financing overview covers that path.
Is AWG the lender?
AWG is an SBA financing advisor and placement firm. We assess the request, prepare the credit memo, identify suitable lenders and help you evaluate their offers. We guide you through lender review, approval and closing. The lender makes the credit decision; financing is subject to approval.
Who pays AWG’s placement fee?
Our financing placement fee is paid by the lender at closing. If applicable, any separate advisory scope and fee are agreed with you at the outset. Lender fees and third-party closing costs are separate.
Does an inquiry or referral mean I’m approved?
No. An initial inquiry or partner introduction is not a credit approval or a commitment to lend. Financing is subject to lender underwriting, approval and applicable SBA requirements.