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    4 Replies Latest reply on Apr 17, 2008 3:12 PM by brinat0318

    Financing for existing business?

    infinite Newbie
      I came across this site today while searching the web for information on business financing, and found a lot of helpful answers and advice.

      I do not have a business plan, lawyer, or accountant yet, not going to put that money out there till i know there is some way financing what i want to do. Once i know there is a way then i have no problem putting money out there.

      I am trying to purchase an existing business that has been successful for 14 years, and the owner and his wife are looking to stop working 60 hour weeks and move across the country to retire. They want $800k for the "equipment" the business needs to operate that to buy new would be around $1.25milion. and $500k for actual cost of inventory in stock. They then want $1.5million in considerations. The reason i am interested is because it is under performing due to management and they do no advertising but still make $425k/year in profit. From talking to friends that run the same exact type business in another part of the country i have plans that i expect will increase profits to $550k the first year and $1million in < 3 years.

      I have experience running multiple small businesses, including in this industry, some for as long as 7 years, but have never had to or wanted to deal with financing after all cash is king. I have a partner who has 30+ years in the industry but not alot of cash to put up.

      Now my question is are there any way to financing an existing business, its assets, A/R etc? I could probably raise 30% of the funds from investors, but having no experience with financing i want to make sure there is a way to raise the other 70%.