⚡ TL;DR:

For years the same conversation killed good deals: a buyer wants a business and the building it operates from, an SBA loan is the obvious tool, and the lender says not cleanly. On May 18 that changed. Effective July 4, the SBA is decoupling the 7(a) and 504 into two independent $5M limits instead of one shared $5M cap, up to $10M of SBA-backed financing on a single acquisition.

Inside: a worked $10M deal that closes on $725K of buyer cash, the refinance play that turns one 7(a) into a platform for the next acquisition (the 75% test), and the five questions that separate a lender ready for the new rule from one still quoting the old one.

Most searchers conclude AI is fine for emails but useless for real deal work. This week’s article argues they have the cause wrong: the problem is not the model, it is that the model has no memory of the search and starts every chat from zero.

The fix is not a cleverer prompt. It is a file setup any searcher can stand up by Friday: one folder, two files that compound (CLAUDE.md for who you are and what you buy, CONTEXT.md for where the search stands), and three workflows worth automating once it works (inbox drag, CIM triage, pipeline memory).

A full-service commercial sign manufacturer in the St. Louis, Missouri area, established in 1978 and run with 20 full-time employees, handling design, fabrication, installation, maintenance, and lighting. The asking price includes the real estate, and a lender has already prequalified the business for SBA financing.

Why this deal stands out: Three things rarely line up at once: real estate folded into the price, an SBA lender prequalification already in hand, and 48 years of continuous operation. The prequalification removes the single biggest financing unknown before a buyer writes an LOI. At 4.5x SDE the multiple reflects the building and the track record.

💡 EBIT Take: A 15% SDE margin is the line item to interrogate. Sign work runs on project bids and material costs, so pull the trailing-twelve-month margin trend and the backlog in QoE. With 20 employees this is a full-time operating role, not a semi-absentee deal, so confirm which managers stay.

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An Indiana-based federal technical services provider delivering Resource Efficiency Manager services, energy engineering, and operational energy management to U.S. Department of Defense installations. The company has operated for more than 26 years and works through long-standing U.S. Army Corps of Engineers relationships, with an active GSA Schedule.

Why this deal stands out: Long-term federal contracts are about as durable as small-business revenue gets, and at 2.4x cash flow the price does not reflect that durability. The 2.95x DSCR leaves roughly $496K after debt service. A 26-year operating history inside the USACE procurement system is a relationship moat a new entrant cannot quickly build.

💡 EBIT Take: Government contracting rewards diligence on the contract vehicles. Confirm the backlog, the remaining option years, and whether the work is prime or subcontract, then check whether any awards are set-asides a new owner could not recompete. Verify the GSA Schedule transfers and that key technical staff are under agreement to stay.

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An Indiana specialty audio-visual integrator that designs and installs immersive AV and media systems for experiential environments. The business runs about $4.0M in revenue with $935K of seller’s discretionary earnings.

Why this deal stands out: At 2.8x SDE this is the lowest multiple in the issue, and the coverage is strong: a 2.50x DSCR and roughly $561K of cash flow after a standard SBA note. Experiential AV is a niche with real design and engineering barriers, which keeps it out of commodity price competition.

💡 EBIT Take: Project-based integration revenue is lumpy, so pull three years of monthly bookings and look at how concentrated revenue is among the top clients. Confirm whether the design talent and project managers stay, since in this business the people are the capability. Ask how much revenue is repeat-client versus one-time builds.

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An established Allstate insurance agency in the eastern Dallas metro, run by experienced management already in place. The agency carries $14.1M of written premium across 4,972 active policies, an 81.08% retention rate, and reports $2.16M of revenue against $1.24M of expenses.

Why this deal stands out: Renewals make insurance-agency revenue some of the most predictable cash flow an SBA buyer can underwrite, and 81% retention on nearly 5,000 policies is a healthy book. Revenue of $2.16M against $1.24M of expenses leaves roughly $920K before debt service, and management already runs the day to day.

💡 EBIT Take: The carrier relationship is the deal. Confirm the Allstate agency agreement is assignable and that the carrier will appoint the buyer, because without appointment the book does not transfer. The listing shows revenue and expenses but not a labeled owner-earnings line, so reconcile the true seller’s discretionary earnings before trusting the multiple.

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A Phoenix, Arizona wholesale distributor serving the professional tattoo and body-art industry, established in 2010, with a proprietary branded product line, national shipping, local delivery, and warehousing and fulfillment for professional customers. Revenue runs about $2.87M.

Why this deal stands out: A proprietary branded product line is a genuine moat: it is why professional customers reorder and why a competitor cannot simply undercut on price. B2B distribution into a niche professional market is the kind of boring, repeat-purchase cash flow that holds value through cycles.

💡 EBIT Take: The brand is the asset, so confirm the trademarks and any manufacturing or supply agreements transfer cleanly. Distribution lives on supplier terms and inventory discipline, so verify supplier concentration, the age of the inventory, and how much revenue is recurring professional accounts versus one-time buyers.

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An electrical contracting firm in Florida that has operated for several decades, providing residential, commercial, and light-industrial electrical services. Revenue runs about $1.52M with $656K of cash flow.

Why this deal stands out: Several decades of operation in one Florida market builds the reputation and referral base that drives an electrical contractor’s repeat work. A 43% cash-flow margin is strong for the trade, and the 1.69x DSCR clears a standard SBA note with room to spare.

💡 EBIT Take: Electrical contracting depends on a transferable license and a master electrician, so confirm the licensing path for a new owner before anything else. Pull the split between residential, commercial, and light-industrial work, check how much revenue is repeat versus one-time, and verify the field crew and key estimators intend to stay.

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Disclaimer: Educational content only, not investment advice. Listings come from third-party sources and accuracy is not guaranteed. Do your own due diligence. Consult legal, accounting, and financing professionals before making any acquisition decisions.