Looking for Business Owner advice??
08-09-2003, 09:46 PM
#1
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Looking for Business Owner advice??
From all you OSO business owners and entrepreneurs. I'm looking at buying a boat/ RV sales/ service business. The original owner is getting ready to retire and he's looking for a buyer interested in actually running the business and not just, as his said, collecting checks. Before I give my accountant a heart attack I was looking for any input from you seasoned business owners on recommendations for financing sources and what type of net worth/ collateral is required (or any other pitfalls/ hurdles to be aware of). I figured SBL is a starting point...The owner is willing to take back 40%.
Appreciate the input!!
Luxy
Appreciate the input!!
Luxy
08-10-2003, 09:45 AM
#2
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Join Date: Feb 2001
Location: Verona Beach, NY USA
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For financing try Valley National Bank, they did great job for us. I believe it is: valleynationalbank.com
I'll have to confirm the web site when I get back to the office.
I'll have to confirm the web site when I get back to the office.
08-10-2003, 05:24 PM
#4
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Capital, capital, capital, the more you have the better luck you are going to have. Usually if a seller is willing to carry back some money, the remainder is what I as a lender believe the business is really worth until they show me different.
You probably would be better with an SBA 504 loan because is a fixed rate, then the lender is into it for 50% or less. But the seller is going to have to part with the financials of the business to have any chance.
I could go into a long disertation but sufice to say, have some good $$ going in, be able to sell the business to the lender, ie you better now what is going on, how the trends have been for that business and what makes you think you can do as good or better? That is what you have to prove. You may even put together an exit strategy that gets everyone paid off if there is a few down years at the start. ie how much capital do you have to work with.
You probably would be better with an SBA 504 loan because is a fixed rate, then the lender is into it for 50% or less. But the seller is going to have to part with the financials of the business to have any chance.
I could go into a long disertation but sufice to say, have some good $$ going in, be able to sell the business to the lender, ie you better now what is going on, how the trends have been for that business and what makes you think you can do as good or better? That is what you have to prove. You may even put together an exit strategy that gets everyone paid off if there is a few down years at the start. ie how much capital do you have to work with.
