Home – New Forums Money matters Finance for an established business?

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  • #987669
    Ems1981
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    I’ve been looking at a business purchase recently. Purchase price 340k, established 27 years – current owner looking to retire after buying in 2004. Have the last 7 years financials and profits very healthy. From 2004-2009 the business was run under management with no active role from the owner, NP over 250k from available financial statements for all years. From 2009 to present the owner has been running the business on limited hours, still generating high net profits but with extended hours profits could increase substantially.

    The business is located in a large regional centre, population around 30,000.

    I’ve been looking for a career change, so this would be my first venture into business. I have 2 investment properties that have some equity in.

    In regards to finance, would a bank consider someone who has no experience? And if so how much am I looking to have to contribute? How popular is vendor finance these days?

    #1163750
    MissSassy
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    It is often easier than you think to borrow, especially when you have some property handy.

    Vendor finance is always an option and it is likely to be on the table when someone has a very successful or profitable business.

    #1163751
    Anonymous
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    Hi there Ems1981,

    I’m not the right person to answer your questions, but did want to welcome you to the forum :)

    Thanks for joining us, and I hope you pick up some info here that helps move this opportunity forward for you.

    Good luck!
    Jayne

    #1163752
    MikeF
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    Ems1981, post: 189561 wrote:
    I’ve been looking at a business purchase recently. Purchase price 340k, established 27 years – current owner looking to retire after buying in 2004. Have the last 7 years financials and profits very healthy. From 2004-2009 the business was run under management with no active role from the owner, NP over 250k from available financial statements for all years. From 2009 to present the owner has been running the business on limited hours, still generating high net profits but with extended hours profits could increase substantially.

    The business is located in a large regional centre, population around 30,000.

    I’ve been looking for a career change, so this would be my first venture into business. I have 2 investment properties that have some equity in.

    In regards to finance, would a bank consider someone who has no experience? And if so how much am I looking to have to contribute? How popular is vendor finance these days?

    Hi

    Would depend on the following;

    -What sort of business is it and what existing management would be retained
    -What is your working/professional background
    -What exactly are you purchasing ie are there any assets
    -What is the purchase price
    -Your financial position is critical to the whole thing and how you approach lenders will make or break the chance of funding

    Regards

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