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?
Financing and structuring a business acquisition can be streamlined if you first find a business broker in Atlanta. Fortunately, there are several ways to finance and structure buying a business. Our professionals at VR understand the complexities of business acquisition and can help you determine the best financing solution. Finding this solution can be the difference between a successful transaction and missing a great opportunity.
When you are looking to buy a business in Atlanta, it is important to find financing designed to serve both the capital and cash flow requirements of the business. At the same time, consider the lifestyle needs of the buyer and the integrity of the transition for the seller as well.
It is important to have a financing solution that will serve the capital and cash flow needs of the business, preserve the lifestyle needs of the buyer while maintaining the integrity of the transaction for the seller.
Seller financing greatly increases the chances that a business will sell. Seller financing commands 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
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.