💡 Lenders do not lend on potential; they lend on historical cash flow and collateral. Ensure your target business can comfortably service the debt you plan to take on.
Raising capital to buy an existing business requires a strategic mix of personal investment, debt, and outside equity.
Outline your purchase price and proposed capital structure (e.g., 10% down, 20% seller financing, 70% bank loan).
Sum up your available cash and maximum borrowing capacity.
Best for buyers with strong banking relationships, high credit scores, and hard collateral (like real estate or heavy equipment).
Look for profitable companies with clean financial records and strong cash flow.
Create a professional presentation showing the business's historical financials, your background, and your growth strategy to show to banks and investors.