Business Acquisition Financing

BUSINESS ACQUISITION

Trust Financing Solutions is here to finance your business acquisition. We provide the necessary capital to fund the purchase of the company you wish to acquire.

We provide timely, reliable, and customized solutions that are often not accessible through banks and traditional lenders.  Our objective is to meet your need for commercial financing with efficiency, flexibility and professionalism – especially in difficult situations.

We often use SBA 7a backed loans for business acquisitions:
 – micro loan  (<$50k)
 – express loan (<$500k) — can close within 45 days
 – larger 7a loan (>$500k to $5 million+)

And we have USDA backed loans for business real estate acquisitions in rural areas that can fund up to $25 million.  97% of the US meets the “rural” standard to qualify for this. It’s a great loan product to purchase real estate and more.

How may USDA B&I guaranteed loan funds be used?

Eligible USDA Business & Industry uses include (but are not limited to):

  • Business conversion, enlargement, repair, modernization, or development.
  • The purchase and development of land, buildings, and associated infrastructure for commercial or industrial properties.
  • The purchase and installation of machinery and equipment,  supplies or inventory.
  • Debt refinancing when such refinancing improves cash flow and creates jobs.
  • Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.

NOTE: If you want to sell your business or CRE give us a call. We work with a team of highly skilled business professionals to get your business or CRE positioned to sell. We can provide the financing to the buyer to support the transaction. Let us help you get your business or CRE sold.

Steps in Business Acquisition

  • Analysis of the purchase price. We work with our underwriters and deal team to determine if the purchase price can be supported based upon the cash flow of the acquired entity.
  • Financing to purchase the company. We do this by leveraging the existing assets of the company to the maximum based upon cash flows available, keeping your cash requirements to a minimum.

The Process

The process of business acquisition involves several key steps, combining financial strategy with careful market analysis. Here’s a brief overview:

  1. Identifying Potential Targets: This involves researching and pinpointing businesses that align with the buyer’s strategic goals.
  2. Preliminary Valuation: A preliminary financial assessment of the target company is conducted to estimate its value.
  3. Due Diligence: An in-depth review of the target company’s financials, operations, legal matters, and other critical areas is essential to understand its true value and potential liabilities.
  4. Financing the Acquisition: This step involves securing the necessary funds to purchase the target company. This can include loans, equity financing, or a combination of both.
  5. Negotiation and Deal Structuring: Terms of the acquisition are negotiated, including price, payment structure, and other key terms.
  6. Closing the Deal: Final agreements are signed, and the acquisition is formally completed.
  7. Post-Acquisition Integration: Successfully integrating the acquired company into the buyer’s operations is crucial for realizing the expected value from the acquisition.

This process requires a blend of financial acumen, strategic planning, teamwork and operational expertise to ensure a successful business acquisition.

The Trust Financing Solutions team works closely with you and your team to get the deal done.