How To Get Funding To Buy An Existing Business -
High-interest debt that can convert to equity if the buyer defaults. This is usually reserved for multi-million dollar "mid-market" deals. How to Prepare for the Pitch
Best for buyers with high credit scores and businesses with significant physical assets (real estate or equipment) to use as collateral. how to get funding to buy an existing business
detailing how you will maintain or grow the business. If you’d like to move forward, tell me: What is the estimated purchase price ? High-interest debt that can convert to equity if
You must prove you have a personal stake in the success of the venture. detailing how you will maintain or grow the business
If the deal is too large, you can bring in "silent partners" or angel investors who provide cash in exchange for a percentage of ownership. 4. Alternative Methods For smaller deals or buyers with unique circumstances.
The buyer pays a down payment, and the rest is paid back to the seller with interest over 3 to 7 years.
Funding a business acquisition is rarely a single-source endeavor. Most buyers use a "capital stack" that combines personal cash (10–20%), debt financing (70–80%), and seller participation (10–20%). 1. Debt Financing