How To Fund Any Deal
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My SMB peeps, here’s a follow up on the loan broker post from yesterday 👇
How in the world are you going to tackle the acquisition financially??
That might be a question you have. It’s one I’ve had.
Sometimes you just need to pick up the phone and call lenders, sometimes you’ll want to use a loan broker to do that for you.
If you go with the loan broker, here are the steps:
FIRST:
Identify company you want to buy or have interest in
Send it to the loan broker that you are in contact with.
They’ll provide their analysis of the deal and what they believe it to be valued at/ what the banks will lend for.
SECOND:
Knowing those numbers will help you negotiate with seller based on available financing
THIRD:
Send an LOI. Once the seller accepts, start the financing process.
FOURTH:
Acquire documents. 3 years of tax returns and income from the biz.
FIFTH:
Gather personal financials if you haven’t already
- Last 3 years tax returns
- Personal financials
- Credit report
- Background info
SIXTH:
Close. If you go the SBA route, you should be able to close within 30-45 days. 60 days with real estate. Contingent on the business appraisal.
This is super super high level overview, but it gives you an idea of the process.
If you found this valuable, I’d greatly appreciate a follow.
My goal is to talk to as many entrepreneurs and business owners as possible about their process of starting, buying or scaling. THEN, share it with you.