I know this is "startup nation" not "buy an existing business nation" but I am sure the same topic would be helpful for many readers.
I am sitting on a very lucrative opportuntiy to buy a business that I know very well and the owner told me "don't let the price tag scare you, I don't need it all now, I will work with you".
I like the guy, we get along fine, but he has alientated several customers that I also have a good relationship with and could easily bring back if I was the owner. He is burned out, and just wants out, but I see many quick ways to increase revenue without spending any money at all. I also have contacts nationwide that would support me with their business as well.
I hear that SBA lenders are still out there, but my question would be on how to structure this? He is not really offering any structure, nor is the biz broker (who is really just a commercial real estate broker), they are pretty much just telling me that if I can figure out a way to structure the deal and arrange financing that we can move forward. the price tag is $2MM and 1/2 of that is for the land and building. The business is a freight company and has trucks and forklift and some other hard assets also, not just office furniture.
I have been told that SBA "REQUIRES" a cash infusion and that sellers cannot just offer to carry back the whole downpayment. I am not sure that is true, but that would seem to be one very simple way to do this deal. Can anyone shed any light on this fact/myth or offer any other suggestions to get a bank to take this deal.