Can you really buy an MSP with 100% SBA financing?

The short answer is yes—provided the business and buyer qualify.

In the latest episode of M&A Insights, I sat down with Nick Padlo and John Wall from Live Oak Bank to discuss one of the questions I hear most often from MSP founders:

“How do I finance my next acquisition?”

I’ll also be joining Nick and John on the Private Credit panel at IT Nation Grow Denver, where we’ll continue the conversation around financing MSP growth and acquisitions.

A few takeaways that stood out:

💰 100% financing is possible.
If the business generates sufficient cash flow, an SBA loan can finance the entire acquisition in the right circumstances.

📈 Cash flow beats leverage.
SBA lenders focus first on the business’s ability to service debt—not just the strength of the balance sheet.

👥 Customer concentration isn’t an automatic deal killer.
Lenders look at the combined business after closing. If concentration is significantly reduced, they’re often much more comfortable.

📊 Clean financials close deals faster.
Tax returns, current financial statements and verified add-backs matter. A polished CIM alone won’t get a loan approved.

📝 Deal structure matters.
Traditional earnouts generally don’t fit SBA transactions. Performance-based seller notes may achieve similar economics—but talk with your lender early to structure the deal correctly.

⏱️ Most financing delays are self-inflicted.
The average closing takes about 45 business days, but incomplete diligence, outdated financials, and endless purchase agreement revisions can quickly extend that timeline.

Whether you’re buying your first MSP or your tenth, understanding how lenders evaluate acquisitions can save months of frustration—and dramatically improve your odds of getting a deal across the finish line.

Have you used SBA financing to acquire an MSP? What surprised you most about the process?