There are many ways to finance a business acquisition, and one of those ways is through the SBA 7(a) program. With this program, you are typically required to put 20-30% of the business purchase price down and the rest is financed over a 25 year period.
All banks have their own specific requirements for the loan. Recently one of our partner lenders was able to secure and close financing for a buyer within 15 days. Most banks take anywhere from 60 - 90 days to complete this process.
Here's an overview of the business profile in this transaction:
An Established, Profitable Business
The business being sold was six years old, a B2B (business to business) service company focusing on tax resolution. At the time of the listing, there was approximately $500K cash flow and 30 trained employees.
A Strategic Buyer
The buyer was a perfect fit for the business. At his current position, he served a similar client base, had excellent experience and industry knowledge. He was looking for the right opportunity to own and operate his own company.
After minimum negotiation, the business sold for 95% of the original asking price. The LOI to closing date was less than 30 days. Even more impressive --only eleven business days passed from the bank financing approval to the closing.
For more information on how to finance the purchase of a business schedule a consultation with one of our brokers today!
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Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A long time resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master's Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.