This content has been marked as final. Show 4 replies
Yes I have many thoughts on how to generate revenue. Share some info for my crystal ball.
Who are you?? Where are you?? How long has the staffing firm been in business??
Have you developed a business plan that I can read??
If this larger company is open and willing to sell out to you, one option is to pay them out of the cash flow and profits of the company you are buying rather than writing them a check. Yes, this might result in you paying them a higher fee in total, but you would be using their assets and earning power as no out of pocket money from you - something you seem to not have in plenty.
Depending on why the other firm is open and ready to sell, you might want to simply merge the two companies and allow the current owners to become part owners of the total new operation which would require zero cash and still accomplish the transaction.
Lastly, you didn't indicate if your company or the one you are trying to purchase is profitable, if there will be economies if you combine, if either of you have real assets to use as collateral, etc. Consider meeting with an SBA funded Small Business Development Center advisor (at no cost to you) by going to www.sba.gov - then clicking on Local Resources, then SBDC and then find your local center for help.
Or contact me for a further discussion. Good luck. Ben
Would like to discuss this further with you. Please contact me at the contact info
on my profile. Thanks.
There are many factoring companies that love to work with staffing companies. You can factor your acocunts to get the cash you need. We list several on our website. If the business you are buying has assets (fixed assets - property, etc.) you could seek to receive a loan against them - reducing the amount of unsecured funding you need for the remaining purchase. Or, as stated, with a small down payment, the current owners may be willing to finance the remaining.
Further, banks love these types of deals. Profitable and experienced business owners buying similar profitable businesses - have you talked to your bank?
lastly, given the amount - look for a SBIC company in your area. Small Business Investment Companies (SBICs) are investment firms that partner with the SBA to provide companies just like yours - doing what you want to do - the money they need (usually in the form of debt and or equity). You can find a SBIC locator on the SBA.gov website.
Business Money Today
Go to original post
Reply to original post
I have an established full service staffing firm that does roughly $2.5 MM annually in sales. We have an opportunity to grow by acquiring another firm. We need roughly $2.5 MM in funding to buy a firm that generates $5.25MM annually in sales. Any thoughts on how to generate revenue.