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    1 Reply Latest reply on Jan 5, 2010 6:42 PM by phanio

    What is my best funding option?

    glad2cU Newbie

      I sold a commercial laundry business (which I owned and operated for the previous 10 years) and leased the commercial property to the purchaser several years ago. The purchaser and lessee recently approaches me about selling the business. He ask me if I would be interested in selling the real estate, so that a potential buyer of the business could purchase the real estate if so inclined. I gave him a value. In the mean time I have entertained the thought of purchasing the business back myself. I own the real estate out right. What would my best funding options for such a purchase be, and why? How would I determine a fare and equable price for this purchase?
        • Re: What is my best funding option?
          phanio Pioneer
          For the price - how did you determine the price for the property? Or, how did you determine the price when you sold the business the first time. There are may ways to value a business - discounted cash flow, multiples of EBITDA or even market or book value of assets. But, since you were on the other side of this deal before - you should have a good understanding of what the business is worth.

          There are also many funding options - but would depend on how much you need and what you can put down. There are traditional and SBA loans - that might work for you (if you can put 10% to 20% down and have a good business plan) - might be your cheapest way. Since you have prior experience????

          There are non-bank options that require good credit and good cash flow (at time of application). There are also many other options but they depend on the amount you are seeking as most have limits.

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