The epidemic of corporate downsizing has made business ownership a more attractive proposition than ever before.
As increasing number of prospective buyers embark on the process of becoming independent business owners, many voice a common concern:
How do I finance the acquisition?
There are several options for financing and structuring a business acquisition.
Our Professional at VR have expert knowledge in financing and can guide you to find the best possible financing solution, that in many cases can mean the difference between a successful transaction or a lost opportunity.
Need help in developing your business?
The depth of VR Business Intermediaries and that of the sheer size of the VR Business Brokers organization experience brings a wealth of proven knowledge in many areas.
- Market Dynamics
- Competitor Environment
- Business Strategies
- Brand and Services Optimization
- Route to Market Opportunities
- Business Plan
- Costs and Expense Reduction
- IT Optimization
- NAFTA: US Market Opportunities
- Intellectual Property Sales
- Franchises for Sale
- Credit Counseling
- Equipment Leasing
- Financing / SBA’s
Seller financing greatly increases the changes that a business will sell. Seller financing command a higher selling price. Interest on the seller financed portion of the transaction can significantly add to the total proceeds received for the sale. Interest rates on seller notes are higher than money market or CD rank rates. Positive consequences compared to all cash sale (check with your tax professionals).
SBA Financing offers buyers attractive loan terms and interest rates while eliminating or reducing the need for the seller to carry a note. This means a lower down payment and lower debt service for the buyer, which translates into more net income for the buyer. Both of these factors make SBA financing attractive.
Often reduces the amount needed for a seller note. Lowers down payment which increases the number of prospective buyers. Lower debt service creates.
Buyer’s Retirement Funds (401k or IRA)
IRAs, 401(k) Plans,403(b) Plans, SEPs, SIMPLE Plans, Annuity Plans, Profit Sharing Plans, Defined Benefit Plans,457 Plans (govt. only), Cash Balance Plans, Money Purchase Plans, Rollover Plans ESOPs.
Most are not aware that the funds for purchasing a business with no debt, no penalties and no upfront taxes, are available right in their corporate careers retirement assets!
Valued Representation by your VR Intermediary will include exploring these and other types of favorable financing options available to you as a qualified buyer. During the buyer qualification process, VR will council you and help manage your expectations once an offer is accepted by the seller.
Are you ready to learn more?
Valued Representation by your VR Intermediary will include exploring these and other types of favorable financing options available to you as a qualified buyer.