Purchasing existing business; valuation q, SBA loan options
by Jbxo, Window Shopper
- Created: November 22, 2013, 2:23 am
- Updated: November 22, 2013, 2:25 am
Greetings- 1st time question asker... An acquaintance is selling his small business (in a field unrelated to my small business). We have just begun talks. He has been in biz 10 years, operates from home & is looking to semi-retire. Grosses $179k with $79k in expenses for claimed profit of 100k. Asking $225-$300k depending on terms. The business definitely has possibility for growth. It carries no physical assets, but it's brand/services are what generates its income. I have operated a small business for a few years. I have good credit. I won't put up my principal home as collateral but have a 2nd property. Unfort that 2nd condo would not be valued at much higher than its existing loan amount. I don't want to put up more than 25k cash. I have not yet proposed to seller that he finance the purchase but considering his semi-retirement goals seems like he might be interested. My questions: (1) is there a good neutral valuation tool I could use that might show his asking prices should be lowered? (2) Is a SBA loan a possibility (either with or without some seller financing)? I could set up a small office in a HUBzone approved tract-- I understand that HuBzone here would is not relevant but I am thinking maybe that those hubzone tracts are also eligible for other more generous loan programs. I'm in Culver City, part of L.A. County. Any counsel by those more experienced than me would be much appreciated.
- Community Home
- Discussion Boards
- Tell Us...
- Discuss Popular Topics
- Developer Resources
- Social Media