ForumsLoans and Lines of Credit

Newstart,

I am still missing something, when you say you will have $230 M in 60 days, what does that mean? Will you own a company that has $230 M in its bank account or does this company have a "line of credit" for $230 M? Or, will you use this company's name to apply for a loan?

Make sure you read the fine print on the line of credit docs. Other loans/lines I have been associated with still had limits and restrictions; use for acquisitions being one of them where we needed preapproval.

I hate to say it, but this sounds like one of those too good to be true - pay $19 M and get $230 M to use for whatever you want.

If the price of the busness is $340 M, I would push for 20-30% down (maybe less) with two paybacks - one on gross receipts and one a loan amort. over 5 years w/interest only, balloon in yr. 5. By that time, you will have established credit and you can refinance the seller note.

How much would it cost to start a competing business? If you cant buy em, put em out of business. Sometimes it is easier and cheaper, especially if the one you are buying already has a bad reputation. Besides, interviewing new employees could be looked at as a perk...

Yes, they are legit, I talk with them often. I flew up there to introduce myself and let them know that I expect what they have promised. Everything is in process. We will see in the next few weeks how it turns out, but I will be visiting them again regardles. If there is anything I can do now or when I go back up there let me know, shouldn't be a problem.
What type of funding are you thinking of getting from them?

how is it going w/b2b? have you been funded?