Business Acquisition Loans in Provo, UT
Business acquisition loans in Provo fund the purchase of an existing company, franchise, or book of business.
Business acquisition loans in Provo fund the purchase of an existing company, franchise, or book of business.
Acquisition financing pays for the purchase of an operating business, including tangible assets, inventory, intellectual property, customer lists, and goodwill. The loan can also fund working capital for the first 90 days and cover professional fees tied to the transaction. Lenders view these loans as lower-risk than startups because the business already generates cash flow and holds verifiable financial records.
Most Provo acquisition deals involve a combination of buyer equity, seller financing, and third-party loans. SBA 7(a) loans remain the most common structure because they allow up to 90% financing on the total project cost and permit seller notes to count toward your equity injection. Conventional acquisition loans move faster but require larger down payments, typically 20% to 30%. Both paths require a business valuation, personal guarantees, and proof that you can manage the transition without losing key customers or staff.
Lenders want to see management experience in the industry you're buying into, a credit score above 680, and enough liquidity to cover your down payment plus three months of debt service. If you're acquiring a Vineyard tech consultancy, lenders expect you to demonstrate software or professional-services background. If it's a Pleasant Grove HVAC company, they'll look for trade credentials or operational leadership in a similar field.
The target business must show consistent revenue for at least two years, positive cash flow, and a debt-service coverage ratio above 1.25. Lenders scrutinize why the current owner is selling. Retirement and relocation pass review easily. Declining sales or pending litigation raise flags. Foothill Lenders pre-qualifies both you and the business before we shop your file, so you enter negotiations knowing your funding ceiling.
How it works
Start by calling (801) 880-5047 or visiting our office at 412 W Rivers Edge Dr, Provo, UT 84604. We'll gather three years of tax returns for you and the target business, a signed letter of intent, and a purchase agreement or term sheet. We'll order a third-party valuation if the deal size or lender requires it.
We submit your package to SBA-preferred lenders, regional banks, and private acquisition financing lenders who compete in the Utah County market. Approval timelines range from three weeks for streamlined SBA deals to 45 days for complex transactions with real estate. Once you're approved, we coordinate with the seller's attorney and your CPA to align closing dates and fund disbursements.
Learn more about our other programs on our Provo commercial business loans page, explore SBA 7(a) loans for lower down payments, or review commercial real estate loans if the acquisition includes property. We serve buyers across our full service area, including Orem, Lindon, Mapleton, and Spanish Fork.
A nurse practitioner buys an established clinic in Orem with patient records, billing systems, and two exam rooms. The seller stays on for 60 days to introduce patients and train staff. An SBA 7(a) loan covers the purchase price and first quarter of payroll.
A contractor acquires a Mapleton landscaping business with trucks, trailers, and a recurring HOA maintenance contract. Seller financing covers 10%, the buyer injects 10%, and a conventional acquisition loan fills the rest. The deal closes in 30 days because the financials are clean and the equipment appraised above book value.
A family partnership buys a Spanish Fork auto-repair franchise. Franchise acquisition financing through an SBA-preferred lender includes the franchise fee, tenant improvements, and initial inventory. The franchisor provides training and brand recognition, reducing lender risk and tightening the approval window.
Serving the Provo area
We know which lenders fund which kinds of Provo businesses, and we position your file where it fits.
One local broker, many lenders, and no cost to apply.
Common questions
Talk to a local advisor and get matched to the right program, no obligation.