Mergers & Acquisitions
Acquisition financing for business buyers — SBA 7(a), seller financing structures, and equity partnerships.
LOAN RANGE
$500K – $50M
TURNAROUND
3–6 weeks
Best for entrepreneurs and operators looking to acquire an existing cash-flowing business through structured financing including SBA loans, seller notes, and equity partnerships.
About Mergers & Acquisitions
Mergers and acquisitions financing provides the capital needed to purchase an existing business, merge with another company, or execute a management buyout. Available from $500,000 to $50,000,000, M&A financing is structured to cover the purchase price of the target business while accounting for the buyer's equity contribution, any seller financing, and the working capital needed post-acquisition.
The most common financing vehicle for small to mid-market business acquisitions is the SBA 7(a) loan, which allows qualified buyers to acquire businesses with as little as 10% to 20% equity injection. For larger transactions, conventional acquisition loans, mezzanine financing, and private equity partnerships are available. Many deals are structured with a combination of senior debt, seller notes, and buyer equity to optimize the capital stack and reduce risk for all parties.
Slate Financial has deep experience structuring acquisition financing across all industries. Our team works with buyers from the letter of intent stage through closing, helping navigate the due diligence process, negotiate deal terms, and secure the optimal financing structure. Whether you are a first-time buyer looking to acquire a small business or a seasoned operator executing a strategic add-on acquisition, we can help you get the deal done.
How It Works
- 1Submit your application along with the signed Letter of Intent (LOI), the target business's financial statements (3 years of tax returns, P&Ls, and balance sheets), and your personal financial information.
- 2Our team evaluates the target's cash flow, the proposed purchase price relative to earnings (typically measured by EBITDA multiples), and your qualifications as a buyer.
- 3We structure a financing package that may include SBA 7(a) debt, conventional bank loans, seller note structuring, and equity partnership arrangements to optimize the deal.
- 4The lender conducts due diligence, orders a business valuation (if required), and reviews all transaction documents. SBA deals also require SBA approval.
- 5At closing, the purchase is funded. Ownership transfers to the buyer, seller notes are executed, and the new business begins operations under your management.
Who Qualifies
- Buyers with relevant industry experience or transferable management and leadership skills
- Personal credit score of 680 or higher (700+ preferred for SBA loans)
- Equity injection of 10% to 30% of the total purchase price (amount varies by deal structure and lender)
- Target business with at least 2 years of profitable operating history and verifiable financial records
- Clean personal financial background with no unresolved tax liens, active bankruptcies, or recent foreclosures
- A clear post-acquisition business plan demonstrating how you will operate and grow the acquired company
Typical Terms
| Financing Amount | $500,000 - $50,000,000 |
| Interest Rate | Prime + 1.5% to 3% for SBA; 6-12% for conventional |
| Loan Term | 10 - 25 years (SBA); 3 - 7 years (conventional) |
| Buyer Equity Required | 10% - 30% of purchase price |
| Seller Note | Often 10-20% on standby for 2 years |
| Timeline to Close | 60 - 120 days typical |
Pros & Cons
Advantages
Considerations
Ready to Apply for Mergers & Acquisitions?
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Program Highlights
Required Documents
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Typical Timeline
3–6 weeks
Timeline begins after all required documents are received and verified.