How Much Money do you Need to Buy a Business?

This is a common question among entrepreneurs looking to buy their first business. The answer depends on how you plan to pay for the acquisition. In most cases, buyers use financing since few people can afford to pay for a business only in cash. We think that buyers actually have a different question in mind. […]

Advantages and Disadvantages of a Small Business Leveraged Buyout

Leveraged buyouts (LBOs) are a popular way to finance business acquisitions by using debt financing. This article focuses on the pros and cons of using an LBO to buy a small business. We discuss the following: Advantages of using an LBO Disadvantages of this strategy Common misconceptions For a detailed explanation of LBOs, read “What […]

Can I Get a Business Acquisition Loan with No Collateral?

There are many misconceptions regarding business acquisition loans and their need for collateral. This article explains the collateral requirements in clear terms and puts you in a better position to negotiate this requirement with lenders. The article covers: What is collateral? Why do lenders ask for collateral? Why is personal collateral required? Can you finance […]

Can You Do a Leveraged Buyout with No Money Down?

Leveraged buyouts are a popular way to finance business acquisitions. Though well-known for their use in large transactions, they are commonly used in smaller acquisitions as well. Thanks to some popular media stories, leveraged buyouts (LBOs) have gained a reputation for financing an acquisition without using your own money. But is this portrayal accurate? In […]

Pros and Cons of Buying a FedEx Route

FedEx routes provide small business owners with the potential of a great business opportunity. However, no business opportunity is perfect, and you must carefully weigh the benefits against potential downsides. This article discusses the advantages and disadvantages of acquiring a route and becoming a contractor for FedEx. Is a FedEx route a good investment? Buying […]

FedEx Case Study – Route Acquisition Using a Small Business LBO (P & D)

This article presents the case study of how a client used a leveraged buyout (LBO) to acquire a FedEx Pickup and Delivery (P&D) route. In recent years we have helpedĀ  clients finance these acquisitions using a LBO strategy. Although not widely known, FedEx operates many P&D routes through third parties. These routes are a niche […]

What to Know Before Buying a Gas Station

Doing the right due diligence on an acquisition can’t guarantee the financial success of a gas station. However, it can prevent you from acquiring a financial nightmare. As a buyer, you should spend a lot of time and resources looking into the business before buying it. This article covers some of the questions you should […]

How to Finance a Gas Station Business Acquisition

Gas stations are very common, but they are also one of the toughest businesses to operate. The fuel market is competitive and profits can be volatile. Consequently, financing the acquisition of an existing gas station can be both difficult and complex. This article provides an overview of gas station finance. We cover the following subjects: […]

Financing Challenges When Buying a Car Wash

Business acquisitions that use financing add a layer of complexity to the transaction. Lenders examine each transaction carefully to ensure that it will be successful. Unfortunately, transactions that don’t meet the lender’s criteria get declined. In this article, we cover some of the issues that affect your ability to get funding for your car wash […]

How to Finance a Car Wash Business Acquisition

In this article, we discuss how entrepreneurs and small business owners can finance the acquisition of a car wash. We cover the following subjects: Ways to finance the acquisition The lender’s perspective Improving and adding machinery Common obstacles and problems Transaction structure How are car wash acquisitions financed? Entrepreneurs and small business owners who want […]