Business Acquisition Loans

Advantages and Disadvantages of a Small Business Leveraged Buyout

Leveraged buyouts (LBO) are a popular way to finance business acquisitions by using debt financing. This article focuses on the pros and cons of using an LBO 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, please 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 with lenders. The article covers: What is collateral? Why do lenders ask for collateral? Why is personal collateral required? Can you finance a […]

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 […]

What is a Leveraged Buyout (LBO)? How Does it Work?

A leveraged buyout, commonly referred to as an LBO, is a type of financial transaction used to acquire a company. Buyouts are highly leveraged transactions. They use equity from the buyer and debt secured by the target company’s assets. Most small business LBOs aim for a ratio of 90% debt and 10% equity, though these […]

How to Get a Business Acquisition Loan

In this article, we discuss the process of getting a loan to acquire a business. This article covers the basics of a business acquisition loan – what you need to have in place before you apply for a loan and how to get the process started. This article helps you if: You are looking for […]

Requirements for a Business Acquisition Loan

This article discusses the main requirements you must meet to qualify for an SBA 7(a) loan. This type of loan is one of the most common financing tools used by small business owners to finance a business acquisition. A Quick Word on SBA Loans The term “SBA Loan” is a bit of a misnomer because […]

Leveraged Buyout Financing for Small Businesses

Most people consider leveraged buyouts to be solutions that can only be used to acquire larger businesses. However, nothing about a leveraged buyout is specific to larger business. The concept can be used to acquire smaller businesses. There is a catch, though. Just because the concept can be used by smaller businesses, it does not mean that […]

How to Finance a Business Acquisition

In this article, we discuss six ways that you can finance the purchase of a business. We also examine three ways to cover the operational costs of your business. Many buyers forget to take into account this important point when making their initial plans. Financing the business acquisition is only part of the game. You […]

Equity Injection Sources For a Business Acquisition Loan (Down Payment)

Most business acquisition loan providers require that buyers of a business provide a down payment, often referred to as an equity injection, in order to get a loan. The equity injection can range from 5% to 30% of the transaction value. In this article, we discuss why lenders require a down payment and describe four […]