Acquisition financing guide
Business acquisition loans for the company you want to buy
Explore financing for an eligible existing business, partner buyout, or other change of ownership—and understand what lenders examine in the full transaction.
Lendstra is not a lender. Financing is offered by third-party lenders and is subject to underwriting, approval, and program requirements.
A clearer place to start
Acquisition financing is underwritten around two stories: the historical performance of the business being purchased and the buyer's ability to own, operate, and repay after closing.
- SBA 7(a) is a common path for eligible acquisitions
- Conventional options may fit some transactions
- Deal structure, valuation, cash flow, and buyer experience all matter
Compare paths
Build the financing around the complete deal
Purchase price is only one part of the request. Working capital, real estate, equipment, seller financing, and transition costs can affect the structure.
SBA 7(a) acquisition loans
A flexible SBA-backed option for eligible ownership changes, including goodwill and other approved transaction costs.
Learn moreCommercial loans
Explore conventional or other commercial structures when the deal and borrower support them.
Learn moreCommercial real estate
Review property financing when the acquisition includes an operating location or related real estate.
Learn moreWorking capital
Plan for eligible post-closing operating needs rather than using every available dollar on the purchase.
Learn moreEquipment financing
Evaluate separate or combined financing for equipment included in the transaction.
Learn moreStartup franchise
Compare buying an existing operation with opening an eligible new franchise location.
Learn moreCommon goals
Acquisition financing may support an eligible
The financing team needs a complete sources-and-uses picture before it can evaluate the request.
A lender may require an independent valuation, buyer contribution, seller note terms, life insurance, collateral, guarantees, and other protections depending on the program and deal.
- Purchase of an existing company
- Partner or shareholder buyout
- Purchase of business assets
- Eligible goodwill
- Working capital at closing
- Equipment included in the sale
- Owner-occupied real estate
- Eligible closing and transition costs
What happens next
One starting point, then the right route
Tell us what you need
Share your financing goal, desired amount, and a few details about the business.
Get routed to the right path
The application flow uses your answers to direct you toward an appropriate next step.
Review available options
If there may be a fit, a financing specialist or lending partner can explain the requirements.
Questions, answered
Frequently asked questions
Can an SBA loan be used to buy a business?+
SBA 7(a) financing is commonly used for eligible business acquisitions and partner buyouts. The lender must document the business value, cash flow, buyer qualifications, equity contribution, purchase terms, and program eligibility.
What financial records are needed from the seller?+
Lenders commonly request historical business tax returns, current financial statements, a debt schedule, payroll or staffing information, and other records needed to verify earnings and understand operations. Requirements vary by deal.
How much money does a buyer need to contribute?+
The required equity contribution depends on the lender, program, buyer, seller financing, and transaction risk. Do not assume one percentage applies to every acquisition; the complete deal must be reviewed.
Does the buyer need experience in the same industry?+
Relevant industry or management experience can strengthen a request, but lenders evaluate the entire background, transferable skills, operating plan, and support team. Specialized or regulated businesses may require more direct experience.
Can working capital be included in the acquisition loan?+
Eligible working capital may be included in some acquisition financing structures. It should be supported by a realistic post-closing budget and clearly shown in the sources and uses.
Not sure which loan fits?
That is what the application path is for. Start with your goal and it will direct you to the most relevant next step.