Smaller buyers using SBA financing can't compete with PE on big deals

Lange noted that buyers outside the industry and family members are entering via smaller deals, buying $2M companies with SBA financing because they cannot compete with private equity groups on $20M companies.

“These buyers can't afford to compete with private equity groups to buy a $20 million company, but they can buy a $2 million one with SBA financing.”

Signals are extracted from public coverage and print archives and pinned to a verbatim quote, presented as reported by their sources; naming a company in a signal is not an accusation against it. The verified mark denotes a high-confidence, corroborated signal. See our methodology and legal notes.