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Glossary · Reading the business

Turnaround Strategy

In short

A plan to revitalize a struggling business and improve its financial performance. This is crucial if you're buying a fixer-upper with an SBA loan.

What it means in a deal

If you're acquiring a business that isn't performing optimally, you need a clear, detailed turnaround strategy. SBA lenders want to see how you plan to improve profitability and cash flow, especially if the business has shown recent declines. Your business plan and financial projections must reflect this strategy, demonstrating a path to strong repayment capacity.

Common questions about Turnaround Strategy

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Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.

Pressure-test the numbers before you make an offer

Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.

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Turnaround Strategy — Business-Buying Glossary | CapBench