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What kind of business is it that you are looking to buy?
Is this supplier nearby where your current operation is?
Do you have experience in supplying?
I would be happy to speak to you about financing an acquisition.
My firm specializes in financial management.
You can email me at email@example.com.
this is an import business with exclusive rights to the companys that he deals with which is about 5
different companys. it different tool company which are located in usa and abroad.yes have already
been in business of suppling for over 1 year now and want to grow and can grow. this business is
located approx 25 mile from my store . my email is firstname.lastname@example.org
Thanks for answering, lark. Do you have the FUNDS?? How about a Business and Marketing Plan??
Who has been in Business 1 year?? You or this company?? Do you have an Accountant?? Lawyer??
No I do not have the funds yet and I do have a business plan but not marketing plan yet
have been working with this type business for approx 12 years. have only owned my store for approx
1+ years and the store that I want to buy has been leader in this field for 10+ years which has grown
to suppling 100's of retail stores.I do have accountant and laywer.
I will send you an email this afternoon.
Lark, Tell us more. What is your background?? is this business something that you have experience in??
How long has this business been in business?? Why are they selling??
Do you have an accountant?? Lawyer?? Have you seen prior year Tax Returns??
The more you share with us, the better we can help you.
You will probably need some cash to do this deal. If this biz can be bought for 40-50% of value, the owner must be desperate to sell. Instead of 40-50%, perhaps it would work out better fro everyone to offer 65% (for example) of which only part is cash and part is stock in either the selling business or your current business. Sometimes "Ye have not because ye ask not." "Ask and yoiu shall receive".
I agree with Luckiest that SCORE or SBA is a good starting place for advice. SCORE also has online counselors from throughout the US, just a few key strokes away. SCORE.org.
There are several ways to buy an existing business and not have to put up any of your own money for the buy-out. Let me walk you through an overview of an actual transaction (I'll round the numbers to make it simpler to follow).
Here is a financial summary of the business the buyer wanted to buy:
From their Balance Sheet -
- The business had $100,000.00 in accounts receivable.
- The business had about $200,000.00 in equipment.
- The business real estate was worth about $225,000.00.
Here is how those assets were used to come up with the purchase price to buy the business:
The buyer was able to use those assets in this way -
- The buyer sold the accounts receivable to a firm that buys receivables for $85,000.
- A funding source was able to lend the buyer $100,000.00 against the value of the equipment
- The funding source was able to lend the buyer $135,000.00 against the value of the real estate.
The total amount the funding source was able to provide the buyer was $320,000.00.
The purchase price was $300,000 and the buyer allocated the surplus $20,000 to be used for additional working capital for the business.
The buyer did not have to put any of their own money into the deal.
And the cash flow from the business was more than enough to pay the buyer for the new debt (for the loan against equipment and real estate) and also to pay themselves a salary to own and manage the business.