Buying an Ameriprise Financial franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 28 7(a) loans to buy an existing Ameriprise Financial (classified mostly as Investment Advice), totaling $38.1M. The median loan was $1,150,000, 78% higher than the $645,250 median for all SBA-financed acquisitions.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Ameriprise Financial resale loans landed between $562,250 and $1,800,000.
- Lender experience exists. Live Oak Banking Company alone has financed 16 Ameriprise Financial resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing an Ameriprise Financial resale
The median SBA 7(a) loan for an Ameriprise Financial resale was $1,150,000 across 28 loans (FY2018 to FY2026). Live Oak Banking Company, Byline Bank and CCFBank National Association have financed the most Ameriprise Financial resales. Of 22 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% average for all SBA acquisition loans.
Ameriprise Financial acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $10.8M | $1,552,500 | |
| FY2019 | 4 | $8.6M | $1,722,500 | |
| FY2020 | 10 | $11.5M | $1,092,500 | |
| FY2021 | 2 | $1.2M | $598,000 | |
| FY2022 | 5 | $5.4M | $788,400 | |
| FY2023 | 1 | $690K | $690,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 22 Ameriprise Financial acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 18 have already been paid in full.
For comparison, Ameriprise Financial has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Lenders financing Ameriprise Financial resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 16 | 57.1% | $24.6M | |
| 2 | Byline Bank | 7 | 25.0% | $8.9M | |
| 3 | CCFBank National Association | 3 | 10.7% | $2.5M | |
| 4 | Pathward National Association | 1 | 3.6% | $1.7M | |
| 5 | First State Bank Nebraska | 1 | 3.6% | $399K |
States where Ameriprise Financial units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Illinois | 3 | 10.7% | $3.5M | |
| 2 | Wisconsin | 3 | 10.7% | $2.5M | |
| 3 | Florida | 2 | 7.1% | $7.1M | |
| 4 | Minnesota | 2 | 7.1% | $3.2M | |
| 5 | California | 2 | 7.1% | $2.7M | |
| 6 | Michigan | 2 | 7.1% | $1M | |
| 7 | Washington | 2 | 7.1% | $681K | |
| 8 | Texas | 1 | 3.6% | $3.2M | |
| 9 | Ohio | 1 | 3.6% | $3.1M | |
| 10 | Colorado | 1 | 3.6% | $2.3M |
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How lenders classify Ameriprise Financial
Lenders code each loan to a NAICS industry. For Ameriprise Financial the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Investment Advice | 18 | 64.3% | $25.9M | |
| 2 | Portfolio Management and Investment Advice | 3 | 10.7% | $3.4M |
Questions buyers ask
How much do buyers borrow to buy an Ameriprise Financial franchise?
The median SBA 7(a) loan for an Ameriprise Financial resale was $1,150,000 across 28 loans (FY2018 to FY2026). The middle half of loans ran from $562,250 to $1,800,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Ameriprise Financial acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Ameriprise Financial (16, 57% of the total). Byline Bank, CCFBank National Association, Pathward National Association follow.
What interest rate and term do Ameriprise Financial acquisition loans carry?
The average initial rate at approval was 6.36% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is an Ameriprise Financial resale riskier than other SBA-financed acquisitions?
In the seasoned cohort (FY2018 to FY2021), none charged off, against the 3.5% average for all SBA acquisition loans.
Where are Ameriprise Financial units being bought with SBA loans?
Illinois (3), Wisconsin (3), Florida (2), Minnesota (2), California (2). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Investment Advice acquisitions
- Illinois acquisitions
- Wisconsin acquisitions
- Florida acquisitions
- Live Oak Banking Company
- Byline Bank
- CCFBank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Ameriprise Financial" (franchise code S0113). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.