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Financing the Deal

Financing Facts

By bbpadmin / June 27, 2012 / Comments Off on Financing Facts

There still aren’t too many ways to finance the purchase of a business. Here are the primary methods: Buyer Financing Some buyers may have the cash available to purchase the business. Some may elect to use the equity in their residence, or other real estate. Others may have other assets that they can sell or…

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The Advantages of Seller Financing

By bbpadmin / June 27, 2012 / Comments Off on The Advantages of Seller Financing

Business owners who want to sell their business are often told by business brokers and intermediaries that they will have to consider financing the sale themselves. Many owners would like to receive all cash, but many also understand that there is very little outside financing available from banks or other sources. The only source left…

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Financing the Business Purchase

By bbpadmin / June 27, 2012 / Comments Off on Financing the Business Purchase

Where can buyers turn for help with what is likely to be the largest single investment of their lives? For most small to mid-sized business acquisitions, here are the best ways to go: Personal Equity Typically, anywhere from 20 to 50 percent of cash needed to buy a business comes from the buyer and his…

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Financing the Business Acquisition

By bbpadmin / June 27, 2012 / Comments Off on Financing the Business Acquisition

The epidemic of corporate downsizing in the US has made owning a business a more attractive proposition than ever before. As increasing numbers of prospective buyers embark on the process of becoming independent business owners, many of them voice a common concern: how do I finance the acquisition? Prospective buyers are aware that the credit…

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Friends and Family: A Financing Option

By bbpadmin / June 27, 2012 / Comments Off on Friends and Family: A Financing Option

The first job facing many prospective business owners is rounding up the cash necessary to make the purchase. They may find that banks have made borrowing difficult (or all but impossible), and that even SBA loans have requirements too stringent to meet. One viable option is obtaining financing from the seller; another is to seek…

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Venture Financing: The Hard Facts

By bbpadmin / June 27, 2012 / Comments Off on Venture Financing: The Hard Facts

Government financing and venture capital financing account for less than one percent of all new business financing. Sixty-seven percent of all small to mid-sized businesses are financed by personal savings or friends; thirty-three percent are financed by lending institutions. The facts about venture capital financing are especially cold and hard… Venture capital is limited to…

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Negotiating the Price Gap Between Buyers and Sellers

By bbpadmin / June 27, 2012 / Comments Off on Negotiating the Price Gap Between Buyers and Sellers

Sellers generally desire all-cash transactions; however, oftentimes partial seller financing is necessary in typical middle market company transactions. Furthermore, sellers who demand all-cash deals typically receive a lower purchase price than they would have if the deal were structured differently. Although buyers may be able to pay all-cash at closing, they often want to structure…

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