Learn 10 ways buyers can finance a small business acquisition, from cash and SBA loans to seller financing, investors and combination structures.
1. Cash
Simple, but capital intensive.
2. SBA Financing
A major source of acquisition financing for qualifying buyers and businesses.
3. Seller Financing
Can supplement other funding.
4. Conventional Bank Financing
Possible for stronger transactions and borrowers.
5. Equity Investors
Partners can provide capital.
6. Family or Friends
Potential source of equity—but document everything.
7. Strategic Partners
Someone with industry experience may bring both money and expertise.
8. Combination Financing
Many acquisitions use more than one source.
9. Asset-Based Financing
Certain businesses may have financeable assets.
10. Your Own Balance Sheet
Don’t overlook personal liquidity—but don’t risk everything either.
The important point is to build the financing structure after understanding the business, not before.
Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 476 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential. He is also a Florida Licensed Real Estate Broker and Business Brokers of Florida Board Certified Intermediary . Shea is a member of the VRMA and a recognized expert in property management and vacation rental management business sales