Summary: 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 […]
articles
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
Summary: Gas stations are very common acquisition target, 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 […]
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: 1. How are car wash acquisitions financed? Entrepreneurs and small business owners who want to finance the purchase of an existing business have a few options. Most transactions under $5,000,000 are […]
What is a Leveraged Buyout (LBO)? How Does it Work?
Summary: A leveraged buyout, commonly called an LBO, is a type of financial transaction used to acquire a company. Leveraged buyouts combine substantial debt financing with a small equity component from the buyer. Buyers typically use LBOs because debt amplifies the results of their investment. However, this feature can be a drawback if the acquisition […]
What Is a Management Buyout? How Are They Financed?
Summary: 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: 1. What is a management buyout? A management buyout is a […]
How to Get a Business Acquisition Loan
Summary: Most small business acquisitions are financed using a loan. While larger acquisitions have many financing options, smaller transactions typically rely on Small Business Administration (SBA)-backed financing. This article discusses how to get an acquisition loan to buy a small business. We review what you must have in place before you apply, how to get […]
Requirements for a Business Acquisition Loan
Summary: Business acquisition loans backed by the Small Business Administration (SBA), typically through the 7(a) program, have the simplest qualification requirements. Unfortunately, this has led to misconceptions. Qualifying for these loans is easier than qualifying for conventional acquisition loans. However, they are not easy to get. Lenders evaluate these opportunities carefully to ensure they meet […]
Leveraged Buyout Financing for Small Businesses
Most people consider leveraged buyouts as 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 – and often is – used to acquire smaller companies. In this article, we discuss: 1. What is a leveraged buyout? A […]