Monday, September 9, 2013

Need A Loan To Buy A Business In Canada. Merger And Acquisition Financing a la ‘ What Would Gandalf Do’












Looking For A Stockpile Of Tools To Purchase A Business In Canada ?




OVERVIEW – Information on merger and acquisition financing in Canada . If you are looking for a loan to buy a business here’s some tips and strategies that work




A loan to buy a business in Canada completed successfully allows you to ' cross the border' so to speak in business success; and that can also include a merger and acquisition type scenario, both of which have major similarities. And by the way, wouldn’t it be great to have the skills of someone like ' GANDALF ' that Tolkien character who seems to have quintessential skills in a wizard style sort of way! Let's dig in.

When the business owner or financial manager is looking to acquire, or merge with another company the expertise of owners and managers must of course be complimentary to the solution needed.

In a perfect world a merger scenario would involve perfectly complimentary size, assets, profit potential and capital structures. Most of us figured out a long time ago in business that it's not a perfect world.

That's when you need the expertise and external advice of a good accountant, lawyer, or Canadian business financing advisor.

Seller reasons to sell their business are varied, and are key to understanding how your deal can be financed and executed properly. They might include crisis type scenarios, the need for current owners and management to ' CASH IN '... and in some cases its might be that growth opportunity simply could not be achieved under the current EQUITY or FINANCING status quo.

Buyers buy a company for typically other reasons - they might be the perception that the company being purchased or acquired is simply too good a deal (sometimes things aren't as they appear!). Or it might be another way to deploy cash and financing resources. And, related to the current owner’s inability to exploit growth the new owner and management team find themselves in a position to enhance growth and long term return on investment.

In some cases the new firm might be able to take advantage of significant research opportunities, perhaps being able to partake in the Canadian governments ' SR&ED program.

Financing a loan to buy a business, or a merger and acquisition type scenario can come from numerous sources. They include:

GOV'T SMALL BUSINESS LOAN - aka ' SBL'

CANADIAN CHARTERED BANK COMMERCIAL TERM LOAN AND OPERATING FACILITIES

VENDOR TAKE BACK PARTICIPATION

ASSET BASED LENDING

BRIDGE LOANS


Careful appraisal of assets, people, and cash flow are keys to a success in buying a business in Canada. Past profits and future profits and cash flow must be weighed in on in a major way. Your lenders aren't equity partners, they simply want to see how they will be repaid.

There's a stockpile of business valuation and assessment tools available from our advisors that will allow you to successfully find, price and finance a business acquisition in Canada. Seek out and speak to a trusted , credible and experienced Canadian business financing advisor who can assist you with your financing need... its just like advice from our pal Gandalf!





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 :

7 Park Avenue Financial = Business Acquisition Financing Expertise





CONTACT:


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























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