I am looking for options on funding a business acquisition that I have been working on for a few months now. Here are the details: Purchase price-$575K, Seller carry-$150K, Capital needed-$425K, Working Cap needed-$60K, Current Downpayment available$130K (30% of loan needed, 22% of purchase price). Annual sales have averaged $1.4M over the last few years and shows good profit. Business has assets of fair market value at $200K. I am still working on getting more capital but I am also searching to see if I can get a deal done with this amount. I am in the Northwest, not that it matters, but I am looking for lendors who may be interested or do deals like this. Any help would be greatly appreciated. Thanks.

TankBK2003

tankbk2003@yahoo.com

There is something about your math that is confusing..... How much of a loan are you looking for?

Also, you should know that while profit is important, the lender is going to be looking at cash flow to repay the debt. This means that knowing how to compute a cash flow statement helps a lot.

Your right, I should have posted a little clearer. The asking is $575 and the seller would carry $150, while I have $130 for a downpayment. This leaves the amount of capital that is needed would be $295 for the purchase plus $60 for working capital. The cash flow is very good with this business and I am very familiar with forecasting cash, that actually is what I currently do at a large power company. Thanks for your response!