Buying a Do it Best franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 28 7(a) loans to buy an existing Do it Best (classified mostly as Hardware Retailers), totaling $21.9M. The median loan was $439,650, 32% lower than the $645,250 median for all SBA-financed acquisitions. 7 of these loans were approved in the last two fiscal years.
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Do it Best resale loans landed between $267,400 and $1,335,500.
- Lender experience exists. Stock Yards Bank & Trust Company alone has financed 4 Do it Best resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Do it Best resale
The median SBA 7(a) loan for a Do it Best resale was $439,650 across 28 loans (FY2018 to FY2026). Stock Yards Bank & Trust Company, First Financial Bank and Old National Bank have financed the most Do it Best resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Do it Best acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $549K | $274,600 | |
| FY2019 | 1 | $400K | $400,000 | |
| FY2020 | 7 | $5.6M | $633,000 | |
| FY2021 | 5 | $6.8M | $1,572,500 | |
| FY2022 | 5 | $4.5M | $671,000 | |
| FY2023 | 1 | $1.3M | $1,300,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 5 | $2M | $284,500 | |
| FY2026 | 2 | $758K | $378,750 |
How often do these acquisition loans fail?
Fewer than 20 Do it Best acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Lenders financing Do it Best resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Stock Yards Bank & Trust Company | 4 | 14.3% | $3.5M | |
| 2 | First Financial Bank | 3 | 10.7% | $1M | |
| 3 | Old National Bank | 2 | 7.1% | $2.1M | |
| 4 | Columbia Bank | 2 | 7.1% | $2M | |
| 5 | Live Oak Banking Company | 2 | 7.1% | $1.7M | |
| 6 | TD Bank, National Association | 2 | 7.1% | $1.2M | |
| 7 | Customers Bank | 2 | 7.1% | $733K | |
| 8 | First National Bank of Pennsylvania | 1 | 3.6% | $2M | |
| 9 | First Merchants Bank | 1 | 3.6% | $1.9M | |
| 10 | Nicolet National Bank | 1 | 3.6% | $1.8M |
States where Do it Best units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Kentucky | 5 | 17.9% | $5.4M | |
| 2 | California | 5 | 17.9% | $2.1M | |
| 3 | Michigan | 3 | 10.7% | $4.5M | |
| 4 | Minnesota | 2 | 7.1% | $2.1M | |
| 5 | New York | 2 | 7.1% | $1.2M | |
| 6 | Ohio | 2 | 7.1% | $758K | |
| 7 | Oregon | 1 | 3.6% | $1.6M | |
| 8 | North Carolina | 1 | 3.6% | $1.4M | |
| 9 | South Carolina | 1 | 3.6% | $1.3M | |
| 10 | Utah | 1 | 3.6% | $385K |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
How lenders classify Do it Best
Lenders code each loan to a NAICS industry. For Do it Best the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hardware Retailers | 23 | 82.1% | $16.7M | |
| 2 | Other Building Material Dealers | 2 | 7.1% | $2M | |
| 3 | Nursery, Garden Center, and Farm Supply Retailers | 1 | 3.6% | $1.4M | |
| 4 | Home Centers | 1 | 3.6% | $1.3M | |
| 5 | Hardware Merchant Wholesalers | 1 | 3.6% | $400K |
Questions buyers ask
How much do buyers borrow to buy a Do it Best franchise?
The median SBA 7(a) loan for a Do it Best resale was $439,650 across 28 loans (FY2018 to FY2026). The middle half of loans ran from $267,400 to $1,335,500. 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 Do it Best acquisitions?
Stock Yards Bank & Trust Company has made the most SBA acquisition loans for Do it Best (4, 14% of the total). First Financial Bank, Old National Bank, Columbia Bank follow.
What interest rate and term do Do it Best acquisition loans carry?
The average initial rate at approval was 6.39% (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 a Do it Best resale riskier than other SBA-financed acquisitions?
Too few Do it Best acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Do it Best units being bought with SBA loans?
Kentucky (5), California (5), Michigan (3), Minnesota (2), New York (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.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Hardware Retailers acquisitions
- Kentucky acquisitions
- California acquisitions
- Michigan acquisitions
- Stock Yards Bank & Trust Company
- First Financial Bank
- Old National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Do it Best - Members" (franchise code S2175). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.