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6 Replies Last post: Jun 3, 2008 12:06 PM by BizLOC

Buying a Second retail store in same industry

Apr 3, 2008 11:04 AM

mikkisc 1 posts since
Apr 3, 2008

I am looking to buy a retail store in my same industry. I currently own a store that has been in business for 9 years. They new store has been established 5 years. It is much smaller than my current store. Initial numbers I have received is the store does about 120,000 in sales with about a 16,000 profit. Would I be better trying to get a loan against my current store (275,000 in sales about 60,000 in profit) or seek other financing. The owner of the store is asking 110,000 for the store and is claiming 51,000 wholesale in product. I believe both the price and the inventory level is overstated but that is another issue. I do not want to have a company come in to do an inventory unless I know I can secure financing. Any suggestions? I did apply through Bank of americas online but have not heard anything. I currently do all my banking with them.

Thanks
Mikkisc

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LUCKIEST 7,912 posts since
Aug 6, 2007

1. Re: Buying a Second retail store in same industry Apr 3, 2008 12:30 PM

Buying a Second retail store in same industry. Welcome to this web site.
Being in business for 9 years, hopefully you have an Accountant and a Lawyer.
Now is the time to talk to them. They should know you better than strangers on this web site.
Is this store in the same town (by the way where are you??)
You and the accountant should know bankers.
Lawyers should also know the right connections to help.
Good luck, LUCKIEST

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TJMorehead 98 posts since
Mar 16, 2008

2. Re: Buying a Second retail store in same industry Apr 3, 2008 10:58 PM

Hi Mikkisc,

Check into a Community ExpressLoan. If you go to my blog page - www.moreheadsconnections.blogspot.com. You'll see information about "Accessing Capital". If that or one of our programs interest you, give me a call 281.914.8166 or email me at moreheadsconnections@gmail.com.

Take care,
TJMorehead

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elitebiz4u 23 posts since
Mar 26, 2008

3. Re: Buying a Second retail store in same industry Apr 3, 2008 11:06 PM

Hi, my name is Jose w/ Elite Business Financial. I'd like to help you. If you'd like you can e-mail your contact info to jose@elitebusinessfinancial.com or visit our website at www.elitebusinessfinancial.com We have a few programs that might be beneficial for you.

Jose
Elite Business Financial
407-925-3486 office

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puzzleman 293 posts since
Oct 11, 2007

4. Re: Buying a Second retail store in same industry Jun 2, 2008 2:28 PM

How about getting a loan for the new store based on the new store and if need any additional help get a loan for current store and make a loan to the new store. This way each store is responsible for it's own loan.

Jim

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Bridge 359 posts since
Jun 3, 2008

5. Re: Buying a Second retail store in same industry Jun 3, 2008 11:12 AM

Both the stores are small. Unless you have established independant credit for your current store, any financing will probably need to be signed personally by you. So, it will not matter what "name" the loan is in, you will be securing it. That being said, SBA guarnteed loan programs for acquisitions can be more generous in payback periods - up to 15 years, than other types of loans.

You should also look for seller financing on acquisitions which can offer verr flexible terms.

As you mentioned, the price, based on the limited informtaion provided, seems excessive.

If you would like to call, I could recommend several lenders I have worked with in the past who speciliaze in small business financing for acquisitions (my firm does NOT do any lending).

Greg Dupuis
Bridge Ventures, LLC
Merger & Acquisition Adsvisors
813-343-2214
www.bridgeventuresllc.com

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BizLOC 8 posts since
Apr 30, 2008

6. Re: Buying a Second retail store in same industry Jun 3, 2008 12:06 PM

Good afternoon,

My name is Paul Warshawsky and I am a business consultant for Manhattan Business Consultants in Cape Coral Florida. I understand that you are looking to open another outlet for your business and you are in need of funds to do so. Here at MBC we have very simplistic criteria. Your company must be registered with the state for a minimum of 24 months. The owner must be a US resident, and have a minimum of a 680 credit score.

If you meet this criteria, please contact me at your convenience and I will go over the rest of the process for you. If you have already found the means, I wish you and your company the best of luck.

Sincerely,

Paul Warshawsky
Manhattan Business Consultants
239-645-5266
pwarshawsky@gmail.com

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Buying a Second retail store in same industry

Apr 3, 2008 11:04 AM

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