HOW TO GET FINANCING

OVERVIEW OF FINANCING ALTERNATIVES

The most appropriate financing for a startup or small business acquisition will depend on each situation. There is no one formula that works in every case. You need to examine the industry, business, needs of the buyer and seller, management, experience, network they have developed, cash flow, multiples, and valuation of the business. In some instances, it may require a combination of debt and equity. In other cases, you may be able to finance the acquisition through debt alone. The easiest way to finance an acquisition is through seller financing. If this doesn't work, you need to structure a different deal.

Debt Financing

Savings, Friends, Family, and Credit Cards

Seller Financing (Acquisitions)

Government Programs

Commercial Banks

Mezzanine Financing

Asset Based Lenders (ABLs)

Equity Financing

Private Investors

Venture Capital

References