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The Leveraged Acquisition

By Hoke - Last updated: Tuesday, August 3, 2010 - Save & Share - Leave a Comment

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Here is a great example of a leveraged acquisition. This one has a $1 Million Acquisition cost. The Buyer put about 20% down. The balance of the funding came from an SBA Business Acquisition Loan and Seller Financing of about 15%.

The Seller received about 85% of the Sale Proceeds in Cash. The business showed about $240,000 Discretionary Income on the Tax Returns. Earnings and Revenues were stable for the last three years. Opening of Escrow to Close of Escrow took place in about 30 days. Today buyers have less cash so business brokers need to be more creative than ever.[/box]


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