Program Summary
Selling your business is a significant life decision, and it’s natural to have questions about the process. These FAQs explain how the Ownership Handoff™ program makes the transition smoother, safer, and more beneficial for both seller and buyer.
OwnershipHandoff™ is a seller-first, veteran-backed exit program that delivers a two-phase, SBA-compliant transition with full legal, financial, and tax support. Unlike the traditional drawn-out, adversarial deal process, it creates a smoother, modern handoff where risk is shared, interests are aligned, and sellers keep more of what they’ve built.
Check out the FAQs and take our Self-Assessment.
What is the Ownership Handoff™ program?
It’s a structured, two-phase small business sale process using SBA 7(a) financing. The seller exits in two steps: selling most of the business now (60%-90%) and the remaining percentage after a two-year transition period.
How is this different from a traditional business sale?
Traditional sales are often drawn-out, expensive, and adversarial, with multiple intermediaries. Ownership Handoff™ is seller-first, collaborative, and designed to reduce time, cost, and conflict.
Who are the buyers?
Buyers come from a vetted network of veterans with strong leadership backgrounds. Sellers meet and select the buyer they trust to carry on the business.
How much money does the seller receive at closing?
Typically 60%-90% of the total purchase price, with the balance paid at the end of the one to two-year transition.
Does the seller have to provide a long-term personal guaranty?
No. SBA rules require only a short-term guaranty (24 months or until 12 months of on-time payments), and sellers aren’t required to pledge personal assets.
What happens during the two-year transition period?
The seller retains a minority ownership stake and can remain in a role such as officer, director, employee, or consultant. This ensures continuity, accountability, and a smoother handoff.
Is seller financing required?
Not necessarily. The program structures SBA financing for the buyer and may qualify for zero equity injection under certain SOP criteria.
What protections are in place for both parties?
Insurance coverage, estate and tax planning, holdback provisions for pre-closing liabilities, and working capital adjustments are included.
What kind of support is provided to the seller?
Financial planning, estate and tax planning, protective insurance, and a collaborative legal process to streamline closing.
What kind of support is provided to the buyer?
Full SBA loan arrangement, comprehensive financial planning, continuity insurance, and the seller’s involvement for relationship transfer.
What does the process look like?
Seller goal setting and initial valuation.
Buyer sourcing and selection.
Due diligence.
Valuation confirmation, purchase agreement, and SBA loan process.
Closing
Two-year transition and final exit.
Why does this program work better than standard approaches?
The approach protects the seller’s legacy, reduces buyer capital barriers, secures cooperation during transition, and lowers transaction time and cost through integrated services and collaborative legal representation.
What's the ideal deal size for the Ownership Handoff approach?
$10M or less in asking/purchase price.
How are recent changes in SBA rules impacting small company acquisitions?
Recent SBA loan rule changes have also made it more difficult for buyers to purchase 100% of the business at closing. There are different rules for partial purchases - rules this program is based on.
What constitutes a qualified buyer?
Our qualified buyers are military veterans. We verify their military service including successful experience as leaders and honorable discharge status; conduct a background check; pre-qualify their bankability with our SBA bank partners. Candidates have also completed the VETtoCEO (non-profit) program.