Archive for the ‘Buying A Business’ Category

Today’s Business Buyer

Wednesday, April 20th, 2016

There is an old saying that goes something like this:  “The worst day of working for yourself is better than the best day of working for someone else.” As a business owner, you know this to be true.  It is a message we deliver to buyers every day.   The buyer of today is a bit…

Using your Retirement Funds to Purchase a Business

Thursday, March 24th, 2016

Although not obvious to many, even knowledgeable observers, pension, profit sharing, 401(k), 403(b), other retirement plan and rollover IRA money may be used to fund your own franchise, business start-up or business property.  This can be done without distributions, taxes, penalties, or the use of loans. It’s sort of a self-venture-capitalization.  These transactions are within…

Business Purchase Financing: Mezzanine

Wednesday, March 23rd, 2016

Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It could be described as a hybrid of debt and equity financing that is is typically used to finance the expansion of…

Business Purchase Financing: Bank Loans

Wednesday, March 23rd, 2016

Bank Loans are an option that some Potential Buyer can use to finance the purchase of a business.   Banks and other lending agencies provide unsecured loans commensurate with the cash available for servicing the debt. “Unsecured” is a misleading term, because banks and other lenders of this type will aim to secure their loans…

Business Purchase Financing: SBA Backed Loans

Wednesday, March 23rd, 2016

SBA Backed Loans can be an option for financing a business purchase. Thanks to the U.S. Small Business Administration Loan Guarantee Program, favorable financing terms are available to business buyers. Similar to the terms of typical seller financing, SBA loans have long amortization periods (ten years), and up to 70 percent financing (more than usually…

Business Purchase Financing: Venture Capitalists

Wednesday, March 23rd, 2016

If you are looking to finance your business purchase through investors, venture capitalists are an option.  Venture capitalists have become more eager players in the financing of independent businesses. Previously known for going after the high-risk, high-profile brand-new business, they are becoming increasingly interested in established, existing entities. This is not to say that outside…

Business Purchase Financing: Seller Financing

Wednesday, March 23rd, 2016

Seller financing is perhaps one of the simplest–and best–ways to finance the acquisition of a business. This means that the business buyer works  hand-in-hand with the seller. The seller’s willingness to participate will be influenced by his or her own requirements: tax considerations as well as cash needs. In some instances, sellers are virtually forced to…

Buyer FAQs: Confidentiality

Thursday, March 17th, 2016

While many people compare selling a business to the sale of real estate, there is one very significant difference: Confidentiality. Think about it this way: when you are selling your house, you put a big sign out in front of your house in order to attract as much attention as possible. If a seller did…

Buyer FAQs: Short Questions

Wednesday, March 16th, 2016

Short Answers Business Buyers have many questions and we do our best to answer all of them. Here are some questions that Gateway Brokers and Intermediaries get often but that’s do not really fit into a category or have short answers.  Why should I buy an existing business? There are 8 primary  reasons to purchase…

Buyer FAQs: Closing Process

Wednesday, March 16th, 2016

After drafting and sending a Letter of Intent or Offer to Purchase, if accepted by the seller, the closing process can begin. Closing a business is a complicated process and involves several types of paperwork. Many Business experts recommend working with a professional closing organization and a professional closing officer. While you will only buy…