Live your dream: buy an existing company and work for yourself!
Grandworth can help.
When you engage a Grandworth broker, we can help you:
- Decide what types of businesses you are best qualified to own based on your experience, and which types are most likely to meet your goals
- Understand and manage the acquisition process
- Locate suitable purchase opportunities
- Prepare offers and negotiate purchase deals
- Find financing
- Manage due diligence
- Work through closing details
It can take months, or even years, to find the right business to buy. The best way to begin is to:
Guidance on Financing a Purchase.
Most business acquisitions require a down payment from the buyer (typically 20% of the purchase price), and third-party financing from a bank. Many lenders will seek loan guarantees from the Small Business Administration (SBA) to mitigate the risk associated with a borrower's default. The SBA often requires the seller to finance a portion of the purchase price (10% is common). The reality is that default is very rare.
Some purchases are all-cash deals, but that's also rare. More likely is a seller-financed sale that involves 30-40% of the purchase price in cash from the buyer at closing, and the balance financed for 5-7 years.
Grandworth does not endorse other service providers, but we do have working relationships with several commercial lenders that we can introduce you to.
