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 an option that can be used only to acquire larger businesses. However, nothing about a leveraged buyout (LBO) is specific to larger businesses. The concept can be used to acquire smaller businesses, and often is. In this article, we discuss: What is a leveraged buyout? How much will […]

How to Finance a Business Acquisition

Financing a business acquisition can be challenging for small business buyers. This article shows you the five most common ways to finance an acquisition. It also describes other issues like handling the down payment and getting operational financing. The article covers: How much money do you need to buy a business? How to finance a […]

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 […]

How to Finance a FedEx Route Acquisition

Owning a FedEx route can be a great opportunity for entrepreneurs with the right experience. It allows you to own a logistics and delivery company with a great client base – all while leveraging FedEx’s great brand reputation and resources. However, getting the financing to purchase a FedEx route can be a challenge. This type […]

How to Finance a Bread Route Acquisition

Buying a bread route can be a great business opportunity for the right person. It enables you to get a business that distributes well-known brands to established clientele (e.g., grocery stores, etc.). However, financing the purchase of a bread route is challenging. The valuation of most bread routes often falls below the value that many […]