Comprehensive definitions of business acquisition, deal sourcing, and financing terms used by search fund operators and brokers.
Government-backed loan providing 80-90% financing for business acquisitions with favorable terms.
The combination of capital sources used to fund a business purchase—SBA, seller, and equity.
When the seller provides a loan to the buyer to cover part of the purchase price.
The buyer's equity contribution required to close an acquisition, typically 10-20%.
Contingent payments tied to post-acquisition performance, bridging valuation gaps.
The cash buffer needed to operate a business, often negotiated as part of the deal.
A measure of a business's cash flow, used to value most Main Street acquisitions.
A preliminary agreement outlining deal terms before entering due diligence.
The comprehensive investigation of a business before finalizing an acquisition.
Acquiring specific assets and liabilities rather than the entire corporate entity.
Contract preventing the seller from starting a competing business post-sale.
The 60-75 age range when business owners are most likely to consider selling.
Signs an owner has stopped investing in growth—outdated website, declining reviews.