Four buyer types: strategic acquirers in the same or an adjacent industry, private equity platforms and their portfolio companies, family offices, and individual buyers backed by search funds or SBA financing.
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Each pays for something different. A strategic buyer pays for capacity, customers, a certification, or a geography they lack, and can often justify the highest price because of synergy. A private equity platform pays for a stable earnings stream and management continuity, and usually wants the owner to stay or to roll over equity. A family office pays for a long hold and frequently offers the most flexible structure. An individual buyer with SBA or search-fund backing pays less but closes deals other buyers pass on, and is frequently the best outcome for a smaller company with an owner willing to stay through a transition. That last group works inside hard limits. The SBA lists $5 million as the largest 7(a) loan, and its acquisition procedures in effect from October 1, 2026 (SOP 50 10 8.1) require at least 10 percent buyer equity, a lender-ordered quality-of-earnings report once the price reaches $3 million, and coverage of 1.25 times debt service; they also prohibit seller earnouts and cap the seller's post-closing role at a consulting agreement of up to 24 months. In practice that points SBA-financed buyers at companies earning around $1 million or less, which is why the too-small FAQ matters for owners near that line. Funds split into platforms, which need a management team to build around, and add-ons folded into a company they already own; the strategic versus private equity comparison sets out how each builds an offer, and a partial recapitalization explains rolled equity. Charlotte has an unusual density of all four buyer types, which is the single biggest structural advantage of selling a manufacturing company here.