Forums: Discussions for entrepreneurs and small business.

I recently came across a business for sale thats worth about $400,000 (asking just under that), without any loans or liens against it.  And of course its right up my alley... so I want to throw this out to anyone here on a creative approach to acquiring this business, either theoretical or practiced.  This business grosses over 700,000 annually and nets about 200,000.

I need to find a way to satisfy the owner with cash in his hand of at least 300,000 or better, and not have to use my funds which don`t come close enough to leverage anyway.  I have a couple in mind so far, but can use more strategies in case the owner won`t accept the first couple offers.

Any ideas???

Jerik

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Cu Gelert - The Legend ... If you`d like to know the value of money, go and borrow some... It is especially hard to work for money that you`ve already spent, on things that you never needed... Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it!

Does the buisness have equipment already paid off that you are buying? What does the purchase include? 

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www.donedealleasing@gmail.com

If you`re still looking for funding, please contact me directly. I work with private investors who are constantly looking for businesses with proven track records (> 5 yrs ideally)  and financials to back that up.

Best, John

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John Y. Chang, MBA
SEO Copywriting / Web Marketing /
Exit Planning Consulting
Daniel Winkler & Associates

(510) 550-7255

It seems to me that Angel financing would be your best bet. Do some research in your state about angel investors. Most states have Angel Forums, or Angel Associations. Try to structure it as a part loan and part equity deal.

Another idea is an SBA loan but they take quite a while to process.  Go to your local bank and see if they have any suggestions or can offer partial financing.

Lastly, talk to the owner and based on how much you can put down in hard cash offer him 10% more than he is asking, but he provides owner financing at say 8% to 10% interest over 7 years. Older people selling a business sometimes will accept a deal like this because they can`t get 8% to 10% on their money in a bank. If they don`t want to wait 7 years make it a 3 or 4 year loan with a balloon payment at the end. That will give you time to line up the other financing and establish relationships with bankers or Angel investors.