Acquisition loans can be used to acquire, refinance, or purchase a business / franchise. There are several eligibility factors which can include the value of the business, experience of the owner, and the past performance of the business.  A business acquisition loan is used for financing a new acquisition, refinancing or purchasing a franchise. 

 

Key components include:

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• The strength of the company acquired.  That strength will cross many lines such as financials statements (balance sheet and profitability), brand image, market dominance, distribution systems and a variety of the company components.

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• The projected profitability of the company to pay the existing company obligations as well as the additional cost of the acquisition loan.

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• The amount of equity contributed by the borrower.

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• Capability of the new management to sustain or grow the business.

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• If purchasing a franchise (either new or an existing company), an assessment will be made on the franchise value and market recognition.

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