Business Acquisition Financing

Who This Is For

• Entrepreneurs purchasing their first established business
• Existing business owners acquiring a competitor to increase market share
• Partners buying out a retiring or exiting co-owner
• Management teams executing a management buyout (MBO)

Common Uses

• Funding the purchase price of the target business
• Providing working capital for the transition period
• Covering franchise transfer fees and initial costs
• Financing the real estate associated with the business acquisition
• Consolidating debt of the acquired company

Qualification & Documents

Key Qualification Factors:

• Target business must show strong historical profitability
• Buyer must have relevant industry or management experience
• Minimum 10% equity injection (down payment) from the buyer
• Strong personal credit of the buyer (680+)
• Post-acquisition cash flow must comfortably cover the new debt

Documents Needed:

• 3 years of tax returns for the target business
• Year-to-date financials for the target business
• Buyer's personal tax returns and Personal Financial Statement
• Letter of Intent (LOI) or Purchase Agreement
• Buyer's resume highlighting relevant industry experience

Funding Timeline

Business acquisitions are complex and require detailed underwriting. The process typically takes 45 to 60 days from the time a complete package is submitted.

Can the seller carry a portion of the financing?

Does the business I'm buying need to be profitable?

What if I don't have direct experience in the industry?