Buying an established business?
Purple Mohawk Indian asked:
If you had $25,000 in liquid cash and you wanted to buy an established business in the price range between $80-120K, how would you go about doing it? Would you try to get SBA financed, find an owner financed business or combination of those? Should I initially consult a local business broker?
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If you had $25,000 in liquid cash and you wanted to buy an established business in the price range between $80-120K, how would you go about doing it? Would you try to get SBA financed, find an owner financed business or combination of those? Should I initially consult a local business broker?
June 26th, 2009 at 9:58 pm
Just a heads up, but you will most likely need to start by seeing a bank. Unless you are buying this business with a group of others, as in a partnership, $25,000 will probably not be enough alone without some kind of loan. Checking with a banker might help you out because then you will get a narrower idea of exactly what you can spend.
June 28th, 2009 at 5:45 am
not a good deal
June 30th, 2009 at 8:06 am
the amount above $25000 needs to be financed, preferrably in the following order as the interest is less from the bank: (a) seller, (b) SBA, and (c) bank
do u know what you are buying - inventory, fixed assets, goodwill?
have you reviewed the financial statements of the business? Has it been profitable? Are equipments in good working conditions?
you may wish to consult an accountant to analyse the financial statements, and a businss broker about the business, before you decide to buy the business