Business Acquisition Finance SME Acquisitions 7 Park Avenue Financial

Header Graphic
Call Today For Canadian Business Financing Expertise tel 416 319 5769 !
Business Acquisitions Finance:  SME Commercial  Buyouts And Acquisitions  In Canada
Ever Prayed For Acquisition Financing?  Financing A Takeover In Canada



YOUR COMPANY IS LOOKING FOR  BUSINESS ACQUISITION  FINANCE!

BUYOUT AND ACQUISITION FINANCE SOLUTIONS IN CANADA

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the biggest issues facing business today.

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

 

acquistion financing                    financing acquisitions

Business acquisition finance solutions in Canada don't necessarily have to meet the requirement of saying a prayer. The ability to purchase and finance a business requires knowledge of some fairly common sense factors coupled with expertise in some specialized areas. Knowing who to go to and what to talk about when you want to finance an acquisition is key. Let's dig in.

DIFFERENT REASONS FOR BUYING A BUSINESS

Top experts tell us that acquisitions financing is such a hot topic for a couple of different reasons - one is the eternal need of the entrepreneur to purchase and operate a business, the other is the number of businesses available today, particularly in the SME sector, as many founders/owners retire.

FINANCING YOUR BUSINESS PURCHASE

Only 1 question remains then - how do you finance the acquisition?  While Canadian chartered banks can certainly pick up a good part of the slack, many owners and the firm's financial profile they are buying simply don't meet bank requirements.  Some statistics out of the states indicate that 80% of deals are bank rejected. That then requires specialized knowledge in a variety of other sources which can finance such transactions.

 

financing an acquisition          acquisition finance

 

GOVERNMENT LOANS CAN BE USED TO BUY A BUSINESS

 

The one exception to bank participation in business acquisition is the Govt CSBF loan program, allowing you to finance business acquisitions to a maximum of 350k. However, that amount, as well as some other forms of ' top up ' financing, might well get the entrepreneur on his or her way to close a deal.

 

THE DOWN PAYMENT /PERSONAL EQUITY COMPONENT

 

Personal equity in the transaction is almost always a requirement in financing acquisitions. Amounts vary relative to the amount of capital you need and the risk profile of the deal. Also factored in, there will be a lender perception of your management depth and experience. Here's where solid, concise business plans focused on cash flow and profits make total sense of loans to buy a business.

 

 

SELLER FINANCING IS KEY AND CAN MAKE OR BREAK AN ACQUISITION 

 

Don't forget that the seller can also assist in a vendor take back, the ' VTB. ' While a lender appreciates the personal capital you are putting at risk, the seller is also at risk to a certain degree when they agree to a vendor take back. More often than not, they are always a positive influence on a deal.

 

MANAGING DEBT

 

The one thing to remember is that a VTB might essentially be viewed as additional debt you are taking on in some cases. So that obligation must be factored into balance sheets and cash flows in your presentation.

 

 
SOME BUYERS GO THE EQUITY ROUTE 

 

Venture capitalists and private equity groups finance only a small portion of businesses for sale - primarily because these transactions are often done in only the millions and tens of millions of dollars and not your ' small business ' solution.

 

LET  7 PARK AVENUE FINANCIAL SHOW YOU  HOW TO FINANCE YOUR BUSINESS ACQUISITION

 

Other solutions to finance a business acquisition include:

 

Unsecured cash flow loans/term loan

 

Equipment financing

 

Bridge loans

 

Asset-based lending / non-bank lines of credit

 

Working capital term loans from Canada's crown corporation bank

 

Accounts Receivable financing

 

Business owners will find that the interest rate on business purchase loans and the final purchase price of transactions will vary greatly based on overall credit quality, size of transaction, type of financing required. Financing acquisitions with debt will always require the proper balance of debt, equity, and required cash flows.

It's important to take a forward look at financing the business post-acquisition for working capital and growth needs.

 

financial acquisition        business acquisition loans canada

 

CONCLUSION

 

Looking for an acquisition finance expert to finance a business purchase? If you're looking for solid yet creative ways to finance a business purchase, seek out and speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor who can assist you with your acquisition needs and a financing structure suited to your business needs.

 

Click here for the business finance track record of 7 Park Avenue Financial





7 Park Avenue Financial/Copyright/2021/Rights Reserved

' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2022

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil