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…
Archive for the ‘Buying A Business’ Category
Business Purchase Financing: Mezzanine
Wednesday, March 23rd, 2016
Business Purchase Financing: Bank Loans
Wednesday, March 23rd, 2016Bank 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, 2016SBA 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, 2016If 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, 2016Seller 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, 2016While 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, 2016Short 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, 2016After 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…
Buyer FAQs: Negotiations
Wednesday, March 16th, 2016Negotiations for buying a business can be very stressful. Even those with experience in negotiating may feel they are unprepared to negotiate the purchase of a business. Here are some things to keep in mind during the negotiation process, according to Entrepreneur Magazine. Price is not Everything: The terms of the sale matter and should be…
Buyer FAQs: Utilizing Gateway
Tuesday, March 15th, 2016The professionals at Gateway MA can be of service to buyers as well as sellers. There are several reasons for utilizing Gateway as a buyer: We save you money: Our services are paid for by the seller. We save you time: Since we already know what businesses are available, we can guide you towards a…
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Gateway’s brokers are always willing to assist business owners and prospective business buyers with education, resources, and guidance through the process of buying and selling businesses. We are here to answer any questions to make the selling & buying process a smooth transition. Call or Email for a free consultation.