What lenders look for
Banks want to see cash flow, track record, deal structure and real skin in the game before they finance a management buyer.
Wed, October 21, 2026 · 10:00–11:00 AM PT · 1:00 PM ET · Live on Zoom
Your best buyer may already be on your payroll.
Structuring the Bankable Management Buyout — a practical framework from Byron McFarland (EO Nebraska) for turning your own leadership team into a realistic, financeable exit.
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Registration link coming soon · Hosted by EO DealExchange
“Lenders need to see cash flow, track record, deal structure, and skin in the game before they’ll finance a management buyout.”— The McFarland Group, Selling to Management Kit
Selling inside isn't a consolation prize.
Many owners assume their management team could never afford to buy the business. This session challenges that assumption — and shows what has to be true for an internal sale to get financed and get you paid.
How internal deals are structured
How successful management transitions are put together — from picking the right buyer on your team to defining fair value.
Protect payout and legacy
Steps you can take today, whether your exit is years away or already on the horizon.
The rules changed in 2025.
Under the SBA's SOP 50 10 8 (effective June 1, 2025), a seller note only counts toward a 7(a) buyer's 10% equity injection if it's on full standby for the life of the loan — and it can cover at most half of that injection. Seller earnouts aren't allowed in SBA-financed changes of ownership.
That's why a "bankable" buyer, planned for in advance, matters more than ever. Not financial or legal advice — sources listed below.
- 10%minimum equity injection on SBA 7(a) changes of ownership
- ≤ 50%of that injection can be a full-standby seller note
- 0seller earnouts permitted in SBA 7(a) changes of ownership
Your speaker
Byron McFarland
Founding Principal, The McFarland Group · EO Nebraska · Omaha, NE
Byron has structured management buyouts for more than 30 years, working alongside owners, buyers and their banks. Over the last two decades he has guided leadership teams responsible for more than $3B in business value — helping owners move from being essential to being optional.
He's the author of The Bankable Buyer: How to Ensure Your Team Can Buy Your Business and You Get Paid in Full, and has spoken at EO chapters across the country, the EO Central Region Leadership Conference, Vistage and more.
The bookThe Bankable BuyerHow to ensure your team can buy your business and you get paid in full.The hour
Outline based on the session description; final run of show set by EO DealExchange.
- Welcome from EO DealExchange
- Could your team buy you out? Challenging the "they can't afford it" assumption
- The bankable buyer — what lenders look for in management buyers
- Structuring the deal — how successful internal transitions come together
- Start today — protecting your payout and legacy, plus Q&A
Times in PT. 1:00 PM ET start.
Questions
What is EO DealExchange?
It's the EO community focused on deals — buying, selling and transitioning businesses. This session is organized by EO DealExchange; reach them at dealexchange@eonetwork.org.
Is it virtual?
Yes. It's a live online session on Zoom. Registered attendees get the join details — we don't post the link publicly.
When is it, in my time zone?
Wednesday, October 21, 2026, 10:00–11:00 AM PT / 1:00–2:00 PM ET (17:00 UTC).
Who should attend?
Owners thinking about succession — whether an exit is years away or already on the horizon — and anyone curious whether their management team could become a financeable buyer.
Is it recorded?
That hasn't been announced. Plan to join live; we'll update this page if a recording is confirmed.
Your exit might be closer than you think.
One hour. One overlooked path to succession.
Register nowRegistration link coming soon