Courtesy of Business Brokerage Press
Remember that when a seller offers seller financing, he or she is taking a risk. If you are the buyer, the seller is taking a risk on you, that you will be able to run the business successfully. Therefore, other than a seller needing the cash from the sale of the business, the biggest obstacle to seller financing is the seller's concern regarding whether a new owner will be able to pay off the loan from the profits of the business. While the seller already has the best idea about the potential profits of the business, there are some additional things a seller may want to learn about a potential buyer.
To read the full article... click here.
Showing posts with label bankers. business loans. Show all posts
Showing posts with label bankers. business loans. Show all posts
Wednesday, March 23, 2011
Friday, January 21, 2011
How to Finance an Acquisition
The credit crunch has led to an increase in seller financing, asset-based lending and alternative sources of capital for buyers.
By Carolyn Brown
Inc.com, Jan 2011
In pursuing an acquisition there are always key items to consider such as the continued growth opportunity provided by the target company, purchase price, and financing terms. Many acquisitions fail due to these priorities not being in line, say M&A experts. For instance, a common mistake buyers make is to focus on an attractive purchase price, rather than the strategic importance of the company's present and future growth plans.
Securing capital and the best financing terms for an acquisition can be daunting and challenging. The sub-prime lending crisis and sluggish economy over the past 24 months has created huge changes in our financial system.
to read the full article... click here.
By Carolyn Brown
Inc.com, Jan 2011
In pursuing an acquisition there are always key items to consider such as the continued growth opportunity provided by the target company, purchase price, and financing terms. Many acquisitions fail due to these priorities not being in line, say M&A experts. For instance, a common mistake buyers make is to focus on an attractive purchase price, rather than the strategic importance of the company's present and future growth plans.
Securing capital and the best financing terms for an acquisition can be daunting and challenging. The sub-prime lending crisis and sluggish economy over the past 24 months has created huge changes in our financial system.
to read the full article... click here.
Wednesday, December 29, 2010
Check out Editorial: Small businesses need more access to credit
By News Sentinel Editorial Board
KnoxNews.com
Posted November 19, 2010 at midnight
Small businesses breathe jobs into the economy, but tight credit is strangling them even as the nation slowly recovers from the worst economic downturn since the Great Depression.
Banks and other lenders remain tight-fisted, frustrating many small business owners who are ready to expand. Without access to credit, business owners can't invest in new equipment or new workers. Seasonal businesses that rely on credit to smooth out dips in cash flow are finding themselves vulnerable, even though they're profitable on a yearly basis.
To read the full article... click here.
KnoxNews.com
Posted November 19, 2010 at midnight
Small businesses breathe jobs into the economy, but tight credit is strangling them even as the nation slowly recovers from the worst economic downturn since the Great Depression.
Banks and other lenders remain tight-fisted, frustrating many small business owners who are ready to expand. Without access to credit, business owners can't invest in new equipment or new workers. Seasonal businesses that rely on credit to smooth out dips in cash flow are finding themselves vulnerable, even though they're profitable on a yearly basis.
To read the full article... click here.
Thursday, November 18, 2010
Check out... Businesses Put Up for Sale Smack Into Harsh Reality
By Sarah E. Needleman
Wall Street Journal (WSJ.com)
October 14, 2010
Small-business owners banking on a big payoff when they sell their establishments may have to settle for a lot less than planned.
A combination of tight credit, skittish buyers and business owners unwilling to sell at rock-bottom prices - factors similarly affecting home sellers - has left the small-business marketplace at a standstill.
David Wetzel says he spent two years trying to sell his business, Dorst Hardware, a Ventnor City, N.J., shop he's owned since 1993. He's now liquidating the business and expects to earn only about a third of his asking price. "I had some very close leads who wanted to buy, but they could just not get the financing," says Mr. Wetzel, who is 64 years old.
to read the full article... click here.
Wall Street Journal (WSJ.com)
October 14, 2010
Small-business owners banking on a big payoff when they sell their establishments may have to settle for a lot less than planned.
A combination of tight credit, skittish buyers and business owners unwilling to sell at rock-bottom prices - factors similarly affecting home sellers - has left the small-business marketplace at a standstill.
David Wetzel says he spent two years trying to sell his business, Dorst Hardware, a Ventnor City, N.J., shop he's owned since 1993. He's now liquidating the business and expects to earn only about a third of his asking price. "I had some very close leads who wanted to buy, but they could just not get the financing," says Mr. Wetzel, who is 64 years old.
to read the full article... click here.
Tuesday, September 28, 2010
Check out Finding Surprises in the Small-Business Jobs Bill
By: Robb Mandelbaum
New York Times
Business Day - Small Business
Monday, September 27, 2010
Most of the controversy surrounding the small-business jobs bill that cleared the House of Representatives on Thursday - after nearly a year of discussion - concerned a $30 billion small-business lending fund to be established by the Treasury Department.
But like most of the legislation, the lending fund is a temporary fix. It will make investments in banks for just one year. The tax breaks in the bill, worth about $12 billion, are mostly good for a year or two.
But one part of the bill, which President Obama will sign into law on Monday, also makes permanent and far-reaching changes to the Small Business Adminstration's guaranteed loan programs - it both allows banks to make much largers loans and permits bigger businesses to take advantage of them - changes that have not been widely discussed. Taken together, these measures potentially could alter the essential character of the S.B.A.'s borrowers - it could make them not very small.
to read the full article... click here.
New York Times
Business Day - Small Business
Monday, September 27, 2010
Most of the controversy surrounding the small-business jobs bill that cleared the House of Representatives on Thursday - after nearly a year of discussion - concerned a $30 billion small-business lending fund to be established by the Treasury Department.
But like most of the legislation, the lending fund is a temporary fix. It will make investments in banks for just one year. The tax breaks in the bill, worth about $12 billion, are mostly good for a year or two.
But one part of the bill, which President Obama will sign into law on Monday, also makes permanent and far-reaching changes to the Small Business Adminstration's guaranteed loan programs - it both allows banks to make much largers loans and permits bigger businesses to take advantage of them - changes that have not been widely discussed. Taken together, these measures potentially could alter the essential character of the S.B.A.'s borrowers - it could make them not very small.
to read the full article... click here.
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