LiveZilla Live Chat Software

How to buy a business

There are several methods when deciding how to buy a business. Mezzanine loans are options for companies who are looking to expand their business through the process of acquisition. Those who are pursuing mezzanine loans are not required to invest a large amount of equity into the deal. Mezzanine loans are beneficial when buying a business because it does not require personal guarantees. The financing is flexible and allows a company to expand via acquisition with the help of mezzanine lenders who look at the big picture when analyzing a company. The way mezzanine debt works is by repayment of loans along with interest and additional return based on the future value of the company. With a mezzanine loan, the lender is very uninvolved and does not interfere with the business owners. The loan can be structured to fit the business owners needs and accommodate to the specific cash flow requirements of the business. Mezzanine loans provide higher funding than a bank or asset based loan. When looking to buy a business, a mezzanine funding option can provide for up to three to four times the cash flow of a bank or asset based loan. Mezzanine loans provide a good option to buy a business. The key of how to buy a business is to analyze the risk that exists for the transaction. When the risk is analyzed, you can structure loans and capital availability around the future business growth needs, ensuring that the business has liquidity options. All financings need to ensure that a company has adequate growth capital while looking for other businesses to buy.

What We Offer
  • Corporate Finance Expertise
  • Vast Practical Experience
  • Legendary Customer Service
Latest M&A Industry Updates!
  • Current trends in Lower Middle M&A Market and Middle-market Mezzanine!
Get a Free Consultation!
  • Mezzanine Funding Solutions
  • Advisory Services
  • End-to-end Acquisition Services
Get a Free Consultation

* Fields marked with an asterisk are mandatory

captcha

From Our Blog

Special Recent Posts

Scale Up Checklist: The 5 Best Way to Ensure Business Expansion Success

Scale Up Checklist: The 5 Best Way to Ensure Business Expansion Success

September 26th, 2017

Growth takes on many forms for middle ma... read more

Deal Symphonies – The importance of Conducting Deal teams

Deal Symphonies – The importance of Conducting Deal teams

September 25th, 2017

Deals are like symphonies – they have mu... read more

What is Growth Capital?

What is Growth Capital?

September 22nd, 2017

Growth Capital describes a form of f... read more

© 2017 AttractCapital, LLC All Rights Reserved.