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 helped  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 […]

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 […]

What Is a Management Buyout? How Are They Financed?

Management buyouts (MBOs) are a common strategy to acquire a business that provides professional managers the opportunity to become business owners. In this article, we discuss: What is a management buyout? Common structures Advantages and disadvantages of an MBO How to finance a management buyout Post-acquisition financing What is a management buyout? A management buyout […]

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 […]