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Make Business Acquisition Financing Work for You
But it just might not be as complex as you think. Here's why. Yes of course those larger transactions in Canada are handled by banks, merchant banks, public offerings, etc. But the biggest part of the Canadian economy is the small to medium enterprise area ( 'SME') and , your guess it.. everyday these businesses are bought and sold successfully in completed transactions.
So what you need when buying a business is a 'strategy ' behind your transaction . There might be many reasons why you are considering such a deal ; one might be simply diversification . That typically lowers your overall business risk .
In some cases you might be benefiting from classic ' synergies' , for example more branding of your products and services, additional product and service lines, etc.
In many cases you are able to lower costs and increase revenues - lowering costs and overheads while increasing revenues is a classic business merger and acquisition strategy.
In certain situations, say a manufacturing company, efficiencies can be realized. Unfortunately this sometimes comes at a 'human cost 'as downsizing is common in this area of mergers and acquisitions.
Of course not all businesses might be doing well if they are a target for an acquisition . In the current environment there are many undervalued or struggling companies that might have very attractive selling prices.
SELLER FINANCING BUSINESS ACQUISITION
In some cases the seller may wish to participate in the financing of your purchase. This classic ' vendor takeback' strategy is a key way in which many businesses are financing.
HOW TO FINANCE A BUSINESS ACQUISITION
Financing strategies you might employ when buying a business include:
Asset based loans
Term loans
Franchise loans
Cash Flow Loans - aka ' Mezzanine Loans '
Sale leaseback strategies
Often times current management may wish to buy the company from the owners. This is typically called a MBO .. management buyout. They often put some new equity into the company and in most cases asset refinancing strategies are employed.
Successfully buying a business and completing satisfactory financing is a unique area of business financing. Business owners must have a solid rationale, as well as a strategy, for contemplating these types of transactions.
If you're looking for real world expertise in buying a business or merging seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a
track record of success who can assist you with your needs.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Click Here: 7 PARK AVENUE FINANCIAL website!
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
