Why the conflict is the file
The buying team wants a lower price. The selling owner wants a marketed cell. Family succession versus an outside sale is a cousin conversation. A search fund is an outside operator. Buyers still lists the rest of the field you may run if the MBO cannot fund.
SBA 7(a) still caps at $5 million with a 10% injection under SOP 50 10 8 (Source: SBA). 7(a) for manufacturing acquisitions is the credit owner. An MBO that hoped for a thinner check does not rewrite the SOP.
Script the floor. The buying team already knows. The rest of the plant does not need a rumor. If the team cannot fund the 10 percent injection on a 7(a) path, say so early. A seller note that is actually a note can fill a gap. A loyalty discount is not a size-band rule. Family succession adds relatives to the same capital problem.
How it works still wants a capital path before anyone exclusive to the team. The MBO owner page is the process home. This page stays on the inside-sale noun. Jason Taken will not price loyalty.
What if the team cannot raise the equity?
Then the process needs a second lane or a seller note that is actually a note. BizBuySell’s manufacturing median remains 2.75x SDE (Source: BizBuySell). That print can still be the room an individual buyer would have used. BLS OEWS May 2025 prints a machinist median of $58,750 (Source: BLS OEWS). Payroll reality does not fund the down payment.
Script the floor. The buying team already knows. The rest of the plant does not need a rumor. If the team cannot fund the 10 percent injection on a 7(a) path, say so early. A seller note that is actually a note can fill a gap. A loyalty discount is not a size-band rule. Family succession adds relatives to the same capital problem. Search funds and outside individuals are the second lane if the MBO cannot close.
How it works still wants a capital path before anyone exclusive to the team. FAQ owns the questions. The MBO owner is the process home. Jason Taken will not price loyalty.
Confidentiality on an inside deal
The buying team already knows. The weld bay does not need a rumor. Script notice with counsel.
| Path | Buyer | Typical friction |
|---|---|---|
| MBO | Current managers | Equity and price conflict |
| Family succession | Relatives | Same plus family |
| Outside sale | Third party | Confidentiality |
The buying team wants a lower price. The selling owner wants a marketed cell. Script confidentiality with counsel because the weld bay does not need a rumor even though the GM already knows. If the team cannot raise the equity, the process needs a second lane or a seller note that is actually a note. A loyalty discount is not a size-band rule. Family succession is a cousin conversation with the same capital problem plus relatives.
7(a) MBOs still live under SOP 50 10 8, including the 10 percent injection. An MBO that hoped for a thinner check does not rewrite the SOP. How it works still wants a capital path before anyone exclusive to the team. FAQ owns the questions. The glossary hands you to the MBO owner, then to a confidential intro call. Jason Taken is a business broker. He will not price a loyalty discount.
If the buying team wants exclusivity before they have a term sheet from a lender, treat it like any other unfunded letter. Friendship on the floor does not replace a capital path. A second lane can stay live until the path is real.
A GM who wants to buy the shop and also keep the current owner on a consulting agreement has created two prices: the equity price and the consulting price. Write both. Do not hide the consulting dollars as an earn-out or as a favor. The MBO owner keeps the process. Family succession is the cousin file. This page stays on the inside sale. Jason Taken will not price a loyalty discount.
What this page will not do
It will not price a “loyalty discount.” Jason Taken is a business broker. The glossary sends you to the owner. After the noun is straight, book a confidential intro call.