Results 1 to 9 of 9
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11-11-2024, 02:11 PM #1
Reputation points: 66
- Join Date
- Jan 2015
- Posts
- 57
Buying out business partners
Merchant is looking for 3-4 million to buy out 1 or both business partners. Business is a nationwide car detailing company doing 500-600k a month with daily balances at 100-200k a month.
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11-11-2024, 02:45 PM #2
Value doesn't make sense. Price is too many multiples of earnings.
Have them negotiate a price and have the buyer give them cash plus a note.
Have the buyer collateralize the note with personal property.
Make note payments from earnings.
Terms and payments have to make sense for cash flow and debt service.Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
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11-11-2024, 03:34 PM #3
Reputation points: 6756
- Join Date
- Dec 2023
- Posts
- 125
There's not enough information provided to make that evaluation. We have what can be extrapolated to annual gross revenue and average daily bank balances. We can't even say that the sale price is "too many multiples" because we don't know what EBITDA is. We also don't know what if any collateral is coming along with the buyout.
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11-11-2024, 03:41 PM #4
Yes...I'm just guessing with the information provided....and the collateralization of personal property reduces risk to the sellers as a transactional option....don't know if that's available or not. But a $3M to $4M loan on a business doing $5M a year - suggests cash flow and debt service prospective issues.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
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11-11-2024, 04:04 PM #5
Specific SBA lenders who do business acquisition...
Here are some parameters for business acquisition from one of my lenders:
Assuming the deal debt services, can finance most CRE purchases at 100% LTV on 7a up to 5MM. They lend based on Prime, but can get aggressive on clean or competitive deals. Have found that a lot of customers will forego a lower rate in order to save on the injection. Rates are case by case, typically 1.0 - 1.5 over Prime, but can get as low as Prime minus 1.50 for the right deal/situation. Have risk-based pricing.
Can potentially lend 100% on business acquisitions if the buyer is in the same industry, i.e. one company buying a competitor. Otherwise, 90-95% is typical (subject to cash flow), and can get creative on seller notes, gift funds, and outside investors. Rates are generally 1.50 - 2.00 over Prime, lower on exception.
Max loan amount is 9MM on business acquisitions, including 5MM SBA and 4MM conventional. Have the ability to lend fully unsecured where necessary.
Closings are 45-60 days, and this lender's process is extremely efficient. Loans are typically approved within two weeks.Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
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11-11-2024, 04:13 PM #6
Reputation points: 96449
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 3,292
Dave Lambert, Business Development
Managed Services Provider
https://www.tsys.com
https://www.united-internet.com
https://www.nmi.com
dave@fcbankcard.com
Office: 727-233-1111
Skype: fc-financial
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11-11-2024, 04:59 PM #7
Reputation points: 349041
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,547
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
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11-11-2024, 06:31 PM #8
John-Michael Tamburro
Managing Director | Car Wash Advisory
495 Brickell Bay Dr, Miami FL, 33131
www.carwashadvisory.comSteve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
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11-18-2024, 03:00 PM #9
Reputation points: 10
- Join Date
- Oct 2024
- Posts
- 17
Have you looked into the SBA 7/a program, we can use it to buy out a partner. please send me more info, and we can get this funded.
Dustin Tucker
Midwestern Financial Solutions
Dustin@midwesternfinancialsolutions.com
www.midwesternfinancialsolutions.com
SBA loans - 7A $500k to $7.5m No Minimum Fico Score
Property Loans- Investment, Commercial, Land, Fix and Flip, New Construction.
Equity Raises $30M+
Private Credit $10M+
Direct Family Office Funding
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