Skip to Content

I am a 50% service connected veteran with 35 years experience in this field. The current owners would like to sell the existing business to me. How is the best way to proceed?

Posted by TVCHelpdesk on April 15, 2010

I am a 50% service connected veteran with 35 years experience in this field. The current owners would like to sell the existing business to me. The sale will include $60,000 for the business, $65,000 in existing inventory and machinery, accounts receivables of $48,000, accounts payable of $40,000 and all existing contracts with the Medicare/Medicaid contract numbers. Need to purchase software package to update electronic billing system, which will shorten payment of accounts receivables. Reevaluate the present marketing program to increase physician referrals. How is the best way to proceed?

Log in
to vote
0
Reviewed by lstille on May 27, 2010.

How motivated are they? Going throught the SBA can be a time consuming process and the downpayment could be quite huge. My recommendation would be to try seller financing. Land contract is a good way to go. You can negotiate your interest, monthly payment, and the years to payoff. Also your downpayment will usually be smaller. Not only that the seller will save on taxes. Once you make final payment the owner will sign the deed over to you. As long as the seller agrees you can get a loan at any time to pay it off.

You could also try lease to purchase. Half your payments will go to your downpayment, and at an agreed upon time, say 2 years, you can get your loan to pay it off.

What it boils down to is the seller and buyer can create any terms they want. Just make sure you have your accountant and lawyer agree to it before you sign it.

Good luck in your venture!!!

Reviewed by James.Mingey on April 19, 2010.

I would go to a SBA Patriot Express lender (US Bank for one in NE) to explore their requirements. I would expect they want as much as 25% of your capital in the deal so you might need partners if you don't have the cash.

If you want to explore the results with me after that, please call.

Good Luck!

James F. Mingey
The Veterans Corporation
www.veteranscorp.org
202-420-7891 (office)
202-631-4333 (cell)