RonaldSkelton.com

E243: Why SBA Loans Are Key to Small Business Acquisitions – Ray Drew Tells All

Watch Here: https://youtu.be/wRejWIStEzw

About the Guest(s):
Ray Drew is a distinguished SBA lender with a career spanning over a decade. Beginning his journey at the young age of 22, Ray has carved a niche for himself in the small business financing sector, emphasizing SBA 7(a) loans. Throughout his career, he has facilitated millions in financing for small business acquisitions. Currently, he is a leading figure at Trueliant Federal Credit Union, a nationwide SBA lender. Ray is also known for producing educational content on his YouTube channel, SBA Ray, and hosting the podcast, The Art of SBA Lending.

Summary:
In this episode of the How2Exit Podcast, host Ronald Skelton chats with Ray Drew, an expert in SBA lending. Ray discusses the surge in SBA-backed business acquisitions since COVID-19 and shares insights on the loan process, borrower prerequisites, and the evolving small business market. They cover key aspects of acquiring businesses, the role of experience, and the due diligence needed for successful financing. Ray also shares real-world examples, offering valuable advice on navigating challenges and the importance of a knowledgeable lender in complex deals.

Key Takeaways:
*Understanding SBA 7(a) Loans: SBA 7(a) loans are a critical tool for small business acquisitions, offering favorable terms and support for borrowers who may not qualify for conventional loans.
*Importance of Experience: While relevant industry experience isn't always mandatory, having managerial skills and a solid understanding of business operations significantly increases the likelihood of loan approval and business success.
*Thorough Due Diligence: Engaging in comprehensive due diligence and having a clear understanding of the business operations and potential challenges is crucial for any acquisition.
*Flexibility and Creativity in Financing: There are various ways to structure deals, including seller notes and bringing in partners to shore up experience gaps, offering flexibility to buyers.
*Choosing the Right Lender: Not all SBA lenders are the same. It’s essential to work with a lender who understands your business model and has a track record of financing similar businesses.
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Contact Ray on
Linkedin: https://www.linkedin.com/in/raydrew4589/
Website: https://www.sbaray.com/
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How2Exit Joins IT ExchangeNet's Channel Partner Network!

Have an IT Company doing between $5M and $30M You may Sell?

The IT ExchangeNet M&A Marketplace Skelton - How2Exit Host has a proprietary database of 50,000+ global buyers seeking IT Services firms, MSPs, MSSPs, Software-as-a-Service platforms and channel partners in the Microsoft, Oracle, ServiceNow and Salesforce space.

If you are interested in learning more about the process and current market valuations, complete the contact form and we’ll respond within one business day. Everything is kept confidential.

https://www.itexchangenet.com/marketplace-how2exit

Our partnership with IT ExchangeNet focuses on deals above $5M in value. If you are looking to buy or sell a tech business below the $5M mark, we recommend Flippa.
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🎬SUGGESTED VIDEOS
Don't forget to watch 📽 Our other videos. Please check them out :

▶️Previous Episode: E242: The Art of the Deal: Steve Rooms' Masterful M&A Strategies, Unraveling the Secrets to Success - https://youtu.be/dpT1WeGasRQ

▶️E135: Sam Rosati On His Journey From Being A Lawyer To Becoming An Entrepreneur In The ETA Space - https://youtu.be/D2qJOidptRA

▶️E100: CEO Of Flippa Blake Hutchison Discusses Innovations In Buying And Selling Digital Assets - https://youtu.be/R1D5guQU9Z0

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E236: Buying a Flat Pack Business: Challenges, Triumphs, and Lessons Learned in Acquiring a Business

Watch Here: https://youtu.be/wJTXbfql96E

About the Guest(s):
Mark Moodley: Mark resides in Australia and has been deeply involved in small business operations, buying and selling entities. He has an extensive background working for a European car manufacturer and has transitioned into mergers and acquisitions after completing courses from well-known industry experts.

Gia Cilento: Living in the metro Detroit area near Ann Arbor, Gia has a background in marketing, publishing, and advertising. She entered the mergers and acquisitions space during COVID-19 and has formerly owned a company since 2007. Gia is an intern of Jay Abraham, adding to her depth of knowledge and expertise in the field.

Walid Costandi: Based in Orlando, Florida, Walid has a rich history as a serial entrepreneur starting back in 1995. He has been heavily involved in engineering, real estate, and business growth operations. Walid's hands-on operational approach focuses on helping employees maximize their careers within the companies he manages.

Summary:
Experts Mark, Gia and Walid, discuss their latest Australian acquisition and US expansion plans. From identifying targets to post-acquisition strategies, they share insights on industry trends, operational efficiencies, and employee focus. Key criteria for new acquisitions include cash flow positivity, scalability, and independent management. A strong general manager is essential for post-deal success.

Key Takeaways:
*Industry Identification: The team chose the flatpack and cabinetry industry due to its ubiquity, straightforward operations, and the potential for customization and growth.
*Due Diligence Learnings: The length and depth of the due diligence process taught the team valuable lessons, especially about assessing the state of machinery and building trust with senior employees.
*Operational Efficiencies: Post-acquisition, focusing on improving employee working conditions and investing in new machinery has enhanced production efficiency significantly.
*Marketing Upgrades: Modernizing the digital presence and utilizing community involvement have been crucial strategies for improving brand recognition and customer engagement.
*Acquisition Criteria: Key criteria for future acquisitions include having an experienced general manager, operational scalability, and a company being cash-flow positive.
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LinkedIn
Mark: https://www.linkedin.com/in/mark-moodley/
Gia: https://www.linkedin.com/in/giacilento/
Walid: https://www.linkedin.com/in/walidc/
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How2Exit Joins IT ExchangeNet's Channel Partner Network!

Have an IT Company doing between $5M and $30M You may Sell?

The IT ExchangeNet M&A Marketplace Skelton - How2Exit Host has a proprietary database of 50,000+ global buyers seeking IT Services firms, MSPs, MSSPs, Software-as-a-Service platforms and channel partners in the Microsoft, Oracle, ServiceNow and Salesforce space.

If you are interested in learning more about the process and current market valuations, complete the contact form and we’ll respond within one business day. Everything is kept confidential.

https://www.itexchangenet.com/marketplace-how2exit

Our partnership with IT ExchangeNet focuses on deals above $5M in value. If you are looking to buy or sell a tech business below the $5M mark, we recommend Flippa.
--------------------------------------------------
💰If you’d like additional ways to support this podcast, you can become a paid subscriber here:
https://how2exit.substack.com/

►Visit Our Website: https://www.how2exit.com/

📧For Business Inquiries: [email protected]

Don't Forget to SUBSCRIBE to the How2Exit channel and press (🔔) to join the Notification Squad and stay updated with new uploads.✨

👇🏻SUBSCRIBE HERE
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