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 […]

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 […]

LBO Case Study – Small Transportation Company (Business Acquisition)

In this article, we present the case study of a leveraged buyout (LBO) applied to a small transportation company. Although this strategy is not mentioned in the small business popular press often, LBOs can be an effective way to buy a small company as well. Since the company is private (rather than publicly listed), all […]

MBO Case Study – Midsize Aviation Company (Business Acquisition)

In this article, we present the case study of a management buyout (MBO) applied to a small/midsize aviation parts company. Although small management buyouts are not mentioned in the business popular press often, they can be an effective way to acquire a company. Since the company is private (rather than publicly listed), all the names […]

How to Finance a Machine Shop Acquisition

This article explains how to finance the acquisition of a machine shop. It helps you whether you are an individual buying your first business or are expanding your machine shop by acquiring competitors. We discuss the following topics: How to finance the acquisition What do lenders look for in a transaction? Should real estate be […]

How to Finance a Metal Fabrication Business Acquisition

This article explains how to finance the acquisition of a metal fabrication company. It provides valuable information to individuals that are going through their first acquisition. It also covers important details that help seasoned executives who are looking to grow their existing companies through acquisitions. In the article, we discuss: How do you finance an […]