SKIP TO SITE NAVIGATION | SWITCH TO GRAPHICAL VERSION
Not so long ago when a person wanted to be their own boss, they did their research, saved their money and eventually hung out a shingle for themselves. With a lot of hard work and a little luck, these entrepreneurs achieved varying levels of success.
How times change.
Across the country, the entrepreneurial spirit still lives. In fact, more people are striking out on their own than ever before, but how they make the jump from employee to owner is what's news today. Many of these new business owners are no longer starting from scratch. Instead, a significant number are choosing to purchase one of the more than 1.7 million existing businesses that for one reason or another are up for sale on any given day across the country.
So why are business acquisitions gaining in popularity? The main reason is money. Often the only feasible way to break into a particular field, such as a hotel or restaurant, is to buy an existing business. Start up costs for many types of businesses prohibit ground-up construction.
Many middle managers that have been the victims of corporate downsizing are forced to open their own businesses because they have difficulties finding a new job. These seasoned veterans are often highly successful in their second careers as business owners.
The advantages of acquiring an existing business are many. Here are a few points to consider:
The most common reason people state for not owning their own business is the lack of a down payment and little start-up capital. However, commercial real estate and business brokers who are knowledgeable about Small Business Administration (SBA) guaranteed loans have the ability to offer their buyers the option of obtaining a long-term, highly leveraged business loan for business acquisitions.
The SBA offers guarantees on loans made through qualified lenders like Wachovia Small Business Capital, with terms that are very appealing to small business owners. Highlights can include: high loan-to-value; fully amortized loans; terms of up to 25 years, depending upon the use of the funds; no prepayment penalties; and, competitive interest rates and fees.
As with any major financial commitment, it is important to consult experts in the field to protect and advise as the transaction progresses. Legal questions ranging from property lines, to labor union concerns, to tax issues are a very real part of business acquisitions and necessitate the consultation of an experienced attorney and certified public accountant. A few dollars invested early on can save you money and grief down the road.
With prices ranging from a few thousand dollars, to a few million dollars, opportunities abound for nearly anyone who wants to be their own boss. With careful shopping and more than a little prudence, a business acquisition can be the best way to be your own boss.
Apply Now
Contact Us to Apply
Contact Us
(800) 566-3862
8:00am - 9:00pm ET
Monday - Friday
Email
Small Business