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 […]

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 […]