[LondonTeaParty]

This is my first post so bare with me.

I've got a medical Lab looking to buy another lab outright.
The Acquisition would be $7,000,000 for the business or $8,000,000 With the property.
Both owners have 720+ credit, Business being purchased grosses $7,000,000 a year and net profit is $3,700,000.
Business purchasing Grosses $18,000,000 A year.
No open positions and no Loans out.

[abfunders]

One way is the SBA route. Do the purchasers have experience in the field? Or are they just investors? These are very hard loans to close, an they'll need some serious skin in the game.

Alternatively, if there's enough collateral in the business (equipment, A/R, property), maybe there's other secured routes outside of the banks that the owners could take and pass over to the buyers. Perhaps they can use it to buy out the business in part, and then move out slowly? Are the current owners planning on staying on-board to manage after the sale? (I would hope so, as that's how most company purchases work.)

Good credit is important, but only goes so far. To get to the number they're looking for, banks are going to need to see a much larger picture, with a full financial package, as well as to understand the histories of the owners.

Hard to do, but there are certainly options. Please contact me, see if we can do something together.

[RichardGerard]

This is my first post so bare with me.

I've got a medical Lab looking to buy another lab outright.
The Acquisition would be $7,000,000 for the business or $8,000,000 With the property.
Both owners have 720+ credit, Business being purchased grosses $7,000,000 a year and net profit is $3,700,000.
Business purchasing Grosses $18,000,000 A year.
No open positions and no Loans out.

Good Morning London Tea Party..

As there are SBA limitations in terms of loan amounts, straight Institutional debt/Asset Based lending will likely be the route to go.

Understanding the topline and the NOI of the business being acquired is important, however the way the two parties are intending to structure the acquisition, the 'skin' in the game for the acquiring company, and whether this is an arms length arrangement are more integral factors to arranging such a deal.

As all of the members of this forum will attest: arranging straight debt -in and of itself -is time consuming. When there are other nuances involved like arranging a business succession- with perhaps ownership buy downs and milestone payments- time becomes an even greater dynamic, and accordingly how to be compensated is a necessary conversation to have.

Whomever you determine to work with on this project, be sure that they can walk the walk, and talk the talk. Who you align with will speak volumes to the Business Owners you are working with, and in large part determine your credibility.

RG

www.businesscapitalconsultants.com

[dpFund]

Good morning London Tea Party,

It sounds like you have an attractive client there.

It also sounds like the majority of the purchase price is the real estate ($7MM of the $8MM purchase price).

I specialize in funding real estate deals. If we ended up funding with stated income, I'd be looking in the 9% range. If the client can qualify for a full doc loan (which it seems they might be able to qualify for, given your snapshot above), we'd be looking in the 6% range.

Please feel free to call or email me so we can discuss. I will give you straight answers, good or bad. Please do not PM here as I don't check in very often and could miss it.

Thanks,

Dan Page
Boulder Equity Partners
Direct: (303) 938-8280
dan@BoulderEquityPartners.com

[RichardGerard]

Dan,

Am I reading the post wrong? Says the acquisition is $7M and $8M with Real Estate- that tells me the RE is valued at around $1M- correct?

[dpFund]

Dan,

Am I reading the post wrong? Says the acquisition is $7M and $8M with Real Estate- that tells me the RE is valued at around $1M- correct?

Hi Richard, you are absolutely right. I read the post incorrectly.

[RichardGerard]

Hahaha.. No worries- made a mistake earlier myself- hope all is well