Sebastian Krappe

The Key Components of a Letter of Intent (LOI) in Small Business Acquisitions

A Letter of Intent (LOI) is one of the most important milestones in a small business acquisition. While it is typically non-binding, the LOI establishes the economic terms, deal structure, and expectations that will guide the entire transaction. From purchase price and financing structure to exclusivity and the due diligence timeline, the terms negotiated in the LOI often shape how the rest of the deal unfolds. Understanding the key components of an LOI can help buyers avoid costly misunderstandings and enter the diligence phase with a clear framework for getting the deal to closing.

The 7 Most Common Capital Stacks in Small Business Acquisitions

Financing a small business acquisition almost always requires more than a single loan or investor. Most deals are built using a capital stack: a combination of debt, equity, and sometimes seller financing layered together to make the transaction possible. The structure of that stack determines how much cash a buyer needs to close, how risk is allocated between the parties, and how sustainable the deal will be after closing.

Using SBA Loans to Finance a Business Acquisition: What Buyers Need to Know

SBA loans are one of the most powerful financing tools available for small business acquisitions, allowing buyers to purchase companies with relatively little equity while benefiting from bank-like interest rates. However, SBA financing comes with strict rules that significantly influence how a deal must be structured. Buyers must understand requirements around equity injections, personal guarantees, collateral, debt service coverage, and the use of seller financing. Recent rule changes have also tightened how seller notes can count toward equity, forcing many deals to include more real buyer capital.

DEALPRINT Launches Limited Release

Today we’re excited to launch the Limited Release of DEALPRINT: the world's first AI-native due diligence platform for SMB acquisitions. This Limited Release introduces instant red-flag detection, automated data-room organization, and smarter document requests designed to cut hours from diligence and help advisors run faster, higher-quality deals. This marks the first major step toward our broader vision of building the operating system for SMB M&A.

New site is live!

We just launched our new website for DEALPRINT: cleaner, faster, and built to showcase how our AI-native platform transforms due diligence for SMB buyers and advisors. Explore our refreshed branding, product walkthroughs, and limited release application.

The Complete Guide to SMB Due Diligence