Today I encountered another commercial real estate agent who doesn't collect all the financial information and tax returns from their client when selling a business. This makes it extremely difficult to pre-qualify buyers for a deal if they don't have some of the most important documents for review for SBA loan purposes! My finance client who is in contract to buy this gas station had to call the CPA of the owner to get all the financial information because the broker representing the seller never collected it! No wonder 70% of all small businesses that are put on the market never sell!
10/2/06 - Today's SBA Loan Tip For Business Purchase Loans/Financing:
Business Valuations On Small Businesses Are Valued Differently By SBA Lenders
Since lenders tend to be bit more conservative - business valuations on small businesses tend to be less than what a business broker or small business owner may compute the value at any point in time. Since lenders usually take lower multiple of earnings and less add-backs in determining the adjusted net income this equates to lower business valuations in business for sale deals. That is why it is important to go to
the right SBA lender on any deal to get the best valuation and financing on a deal.
Today's Featured SBA Pre-Qualified Businesses For Sale
Alabama, Baldwin County, Alabama based Dessert Franchises Opportunities For Sale - Two National Dessert Franchises For Sale. Located In A Very Prosperous Area. This Is A Unique Opportunity To Acquire Two Well Established Nationally Recognized Gourmet Dessert Franchises. Located In A Very Prosperous Economic Environment, These Restaurants Have Easy Access From Foot As Well As Drive By Traffic. Deal Structure: Price: 665,000, Adjusted Net: 175,000, Down Payment: 665,000.
Anaheim Hills, Orange County, California based Fitness Center Listing For Sale - 2000+ Active Membership Gym, No Pool, No Saunas, No Spa, Very Little Maintenance. Top Of The Line Equipment, Very Nice Gym, Room For Expansion, Currently Brings In Over 40,000 Per Month In E.F.T. (Electronic Fund Transfers). Established In 2003, So Everything Is In Great Condition, Outside May Need Some Updating - That's Your Job As A Buyer! Very Long Lease, 7400 Sqft Facility With A Couple Offices. Very Confidential Listing, Customers And Staff Do Not Know It's For Sale. Buyers Should Be Financially Qualified For Such An Investment, And Qualify With The Landlord. This Is An Upscale Neighborhood. Buyer Should Be Prepared To Submit A C.V. And Financial Statement To The Broker. Deal Structure: Price: 770,000, Adjusted Net: 240,000.
* Note: These businesses have been business pre-qualified only - buyers of these businesses will also have to be pre-qualified - before SBA loan business purchase financing may be obtained. Approximately 32 different factors (buyer/seller info) are evaluated in the SBA loan process for business purchase loan financing.•
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