Buying A Business Loans? Easier You Think With This Acquisition Loan And Valuation Help !

Inside The Dangerous High Stakes Of A Business Purchase





OVERVIEW – Information on buying a business loans . An acquisition loan with proper valuation and financing makes your transaction work




Canadian business owners and financial managers will not always meet their personal and corporate goals through organic growth - as a result they seek purchasing and acquiring a business to further those goals.

Valuing and financing that new business is what it's all about - and we're talking about the ' right ' financing!

There are some strong basics you can follow to ensure that acquisition is done properly, meeting your goals and not putting you at risk. In certain occasion the value of the assets you’re are acquiring and financing can make, or break your deal.

Those assets are reflected at ' book value ' in the financials and may have significant real world swings up or down when it comes to financeability. Oh and by the way, when those assets are a lot less than your agreed upon price the GOODWILL aspect of your financing becomes a major challenge.


We're often asked to help with the actual cash flow and valuation around transactions in the SME sector. It's sometimes dangerous to generalize but businesses in that sector would typically sell for 2-5 times proven cash flow.
Keyword : proven!

The challenge then becomes putting financing in place that achieves the acquisition finance goals. Where does that financing come from? It can come from a variety of solid solutions - they include of course our Canadian commercial banks ( good financials required please ) , but alternate sources that work well include the Government Small Business Loan , asset based lending facilities that monetize the assets we've discussed, equipment lessors or a bridge loan of sorts, and even more creatively , a partial vendor take back . Quite often negotiating some co operation and assistance on a VTB or earn out of some sorts is the final piece of the puzzle.

Is there a short check list of some other key issues? You knew there were! They include:

- The ability to deal with existing banks or lenders of the firm you are acquiring
- Your personal financial credit history/experience/background
- Industry visibility re competition, etc
- Supplier /vendor issues re existing sales, contracts
- Current managers/employees

A lot of financing around an acquisition focuses on cash flow and companies with good cash flow bring in higher valuation and even higher chances of successful financing.

'SHARE SALES ' are difficult, if not impossible to financing in Canada, certainly in the SME (small to medium enterprise) market because liquidity cannot be attached to those shares.

Other key factors that will probably affect your financing success include the cyclicality of the business, current financial progress/success, our prior mentioned cash flow, as well as existing debt that you will have to wrestle down, manage, and address.

So, buying a business and getting the right financing in place. High stakes poker ? ! It certainly doesn’t have to be, so seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your valuation and financing needs .




7 PARK AVENUE FINANCIAL
CANADIAN ACQUISITION LOAN EXPERTISE




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/buying-a-business-loans-acquisition-loan-valuation.html



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

EMAIL - sprokop@7parkavenuefinancial.com























Stan Prokop