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. Leveraged buyouts finance the acquisition using debt and a small equity component from the buyer. In this article, we discuss: What is a leveraged buyout? Advantages and disadvantages of an LBO The equity injection Acquisition […]
What Is a Management Buyout? How Are They Financed?
Management buyouts (MBOs) are a common business acquisition strategy. MBOs provide professional managers the opportunity to become business owners. Most MBOs are financed with a high percentage of debt and are considered a specialized type of leveraged buyout. In this article, we discuss: What is a management buyout? Advantages and disadvantages of an MBO The […]
How to Get a Business Acquisition Loan
In this article, we discuss the process of getting a loan to acquire an existing business. We review the basics of a business acquisition loan – what you need to have in place before you apply, how to get the process started, and what to expect. The article covers: How are business acquisitions financed? How […]
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 […]