Offer Accepted On Auto Repair And Tow Business

Update From Mark / Business Buyer-SBA Loan Client

Offer has been accepted by the owner, just got the word from the business broker. What are the next steps for financing this business purchase?

Additional Questions From Mark:

Will they run my credit, when and how many times?

What lender will the loan be with?

My Response Mark's Situation / Question(s):

Lets hope they accepted your offer - it was for the full purchase price! Now we need to get the financing started on your million dollar deal. You need to complete forms for financing - which I will email you. You need to get these items from the owner - 3 years tax returns, copy of the lease, 3 years financials - profit and loss, and balance sheet. You will probably be getting this information and a lot more for due-diligence, but the three years of tax returns are important now for me to review for financial considerations.

Also make sure the escrow company that is going to handle this deal knows how to work with SBA loan financing - it makes it much easier and quicker (and I know you are in a hurry to close).

Only one lender will run your credit, so don't worry about multiple hits, and I will be presenting your deal with multiple lenders. We will go with the one that gives you the best rate and terms on the purchase of this business - and a lender that isn't backed up in underwriting and processing so we get your deal financed in approximately 30 days to meet your criteria.

Current Situation/Information on Mark / Business Buyer-SBA Loan Client:

Offer accepted on an auto shop and towing company. The asking price is a little over $1M. The adjusted net is approximately $600K. I have submitted a full price offer and am awaiting their response. The shop is an absentee owner operation with 2 managers in place for the shop and the towing operation. He will be involved part time and keeping his current job (which is very flexible with hours etc.).

Mark's Background/Information:

Manager of operations in a medium sized company. Good general management skills. Flexible work hours & works approximately 20 Hrs per week. Current salary at his current job is $110K. Down payment available: $500K from savings. Credit Score: 775. Spouse Works: $65K Year. Equity In Real Estate: Approximately $450K, Annual Living Expenses: Approximately $50K.•Technorati  •del.icio.us  •Digg It  •Furl  •ma.gnolia  •Spurl  •Yahoo MyWeb