You have a deal you want to get done. You’re ready to buy a business. Or, maybe ready to sell. Or, looking for a business partner. Or, wanting to refinance. But you need help. Well, investment bankers are all about helping you with that deal.
SBA financing – particularly when used for business acquisition – involves very specific limitations and requirements. Because of its detailed and complex nature, using just any bank for SBA lending would be a mistake. Do your research and pick a bank that has experience and that you trust.
This is not an exhaustive shopping guide but these two tips will get you well on your way to making a solid choice in your SBA lender.
There are two main considerations when thinking about who would and could buy your business.
The first is your management team. The second is the size of your business.
Why are these the two main considerations?
They’re the first two aspects of the business a buyer will go to in order to evaluate.
Your management team and the size of your business matter to buyers.
The distinction between a financial buyer and a strategic buyer is pretty straightforward.
A financial buyer acquires a company as an investment for returns. A strategic buyer acquires a company to advance a business plan.
Buying a business is no easy task. When you make an acquisition there are real consequences for you and your entire team.
Before you set off down the road in pursuing an acquisition you should address the following five questions. Questions one and two are particularly vital and often overlooked.
As an executive at a nonprofit, you deeply and sincerely care for your organization’s mission. Fulfilling the mission is the pinnacle of your organization’s purpose. Whether that mission is employment services, environmental conservation or political advocacy, your mission is important and engaging to the community.
If you’re like other nonprofit executives, you consider your organization’s nonprofit status as an important piece of advocating for the mission. Carrying a 501(c)(3) status allows for distinct operations and means more money can go towards the mission. Therefore, you are understandably concerned about what acquiring a private entity could mean for that status.
Tombstones in the financial industry – one of those things that is done just because it has always been done.
Yes, you read that correctly. Tombstones.
Curious about the term? So were we.
Before we did some research, DVS team members took a guess at the reason why the term “tombstone” is the final step in announcing a closed deal.