

For New Sellers: Financing an Acquisition – What Buyers and Sellers Need To Know
Oct 26, 2023
This podcast episode discusses different financing options for business acquisitions, including SBA loans, seller notes, and bank financing. It compares private equity funding with bank loans and highlights the excessive paperwork involved in SBA loans. The chapter also explores the structure and risk mitigation of equity co-investment in small business acquisitions, as well as the types of capital providers such as private equity firms and family offices. It emphasizes the importance of revenue and profitability trends when assessing an acquisition and the role of a buyer's quality of earnings report. Finally, it highlights the importance of having an acquisition capital intermediary on your team.
Chapters
Transcript
Episode notes
1 2 3 4 5 6 7 8
Introduction
00:00 • 3min
Types of Financing Options for Business Acquisitions
03:01 • 15min
Key Differences Between SBA and Non SBA Loans in Business Acquisitions
18:19 • 2min
Financing of Acquisitions
19:57 • 9min
Understanding and Structuring Equity Co-Investment in Small Business Acquisitions
29:07 • 3min
Capital Providers and Equity Deals
31:42 • 16min
Assessing Acquisitions and Deal Killers
47:52 • 9min
Working with an Acquisition Capital Intermediary
56:50 • 3min