From our offices located in Durango Colorado, we are able to help our business clients build their business with creative financing solutions.
Business Acquisition Financing
With the current business economy, there are many opportunities for healthy companies and individuals to acquire other companies at bargain-basement prices.
As in the next year it is estimated that approximately one Trillion Dollars of Commercial Lending is comming due and payable.
Companies can be acquired by leveraging or refinancing the assets of the company they want to acquire.
In simpler terms, they can buy the company with the company's own money, while expending very little cash of their own.
This then becomes a very active and lucrative market.
There are a number of reasons why a business owner may want to get business acquisition financing. They may want to acquire another business, or simply merge with it.
Merging with another company and taking on a business partner can help to diversify a business's management strengths and shoulder a bit of the burden of running a company.
Acquiring another company, on the other hand, is the quickest way to expand business, and taking on additional products or services may help a business balance its portfolio.
Acquisition financing can help a business in any of these situations and many more. This type of transaction can help the company grow and thrive.
The type of business applying for business acquisition financing is as important as the reason for the application.
There are different types of business acquisition financing for different types of businesses.
Whether a company is in retail or wholesale, manufacturing and production, service rendering, or imports, exports, or distributions will determine what kind of loan is necessary.
Interest rates will also vary, depending on the size of the acquisition and the amount of financing required.
Other ideas or ways of financing a business acquisition, is to utilize an SBA loan. The Small Business Administration Loan Guarantee Program has very favorable financing terms that are available to business buyers.
We will expand on this form of financing in another section.
Venture capitalists have become more eager players in the financing of independent businesses.
Previously known for going after the high-risk, high-profile brand-new business, they are becoming increasingly interested in established, existing entities.
This is not to say that outside equity investors are lining up outside the buyer's door, especially if the buyer is counting on a single investor to take on this kind of risk.
Professional venture capitalists will be less daunted by risk; however, they will likely want majority control and will expect to make at least 30 percent annual rate of return on their investment.
For sixteen years we have continued to live by the statement,
"PROMISE LESS, DELIVER MORE"
