Business Acquisition Financing

Business acquisition loans are typically pursued if the sold business has been profitable, change of ownership is at arms-length and the new ownership/management team has translatable industry experience.  Translatable industry experience encompasses all facets for the type of business being purchased, including managing a similar number of people and managing revenues and budgets of similar size, having the specific technical expertise required, understanding of the industry risk and having the operational skills (sales, manufacturing, financial, etc.) required to run the business.

In the competitive small business marketplace, acquiring a new or rival business can sometimes make more sense than continuing to compete against that business. Consolidating the company's position can provide much-needed stability for operations and eliminate obstacles to success. Managing the finances for a business acquisition typically requires a significant infusion of funds, which may be obtained by selling off corporate assets or by entering into a business acquisition financing arrangement. Financing a business acquisition can provide the necessary competitive edge for small businesses in challenging economic situations. Business acquisition finance arrangements can help companies obtain the funds necessary to purchase businesses and to acquire the assets necessary to compete effectively with rivals in the industry or field of endeavor.

Business acquisition financing typically is achieved using collateral from the existing business. That collateral may be in the form of real estate, equipment or other items of value belonging to the company or in the possession of the owners of the company. Along with sufficient collateral, the company seeking business acquisition financing will generally have to complete a loan application and provide a great deal of documentation regarding the financial condition of the company, its prospects for profitability and its past credit history. CNF Exchange can help companies manage their business acquisition finances more effectively and enjoy a greater degree of flexibility in taking advantage of business opportunities when they arise. Whether the acquisition is a new franchise location or an entirely new direction for the company, CNF Exchange provides outstanding support for small businesses in the lending environment.