Franchise Acquisition Financing

MERGER & ACQUISITION FINANCING

The opportunity to complete a strategic acquisition is one of the best ways to enhance the value of a company, since an acquisition may enable you to leap frog competitors, open new markets, develop new product lines, etc. If your company is interested in a leveraged buyout, it may be able to finance all or most of the purchase price with debt. Debt is the cheapest method of financing an acquisition and can take many forms. These include equipment leasing, term loans, accounts receivable factoring and revolving lines. The amount of debt that can finance an acquisition depends on the assets and cash flows of the combined companies (target and the acquirer) available to collateralize the debt. This will depend on the financial health of both the target and the acquirer. Additionally, by restructuring your existing debt, you may be able to free up cash to fund the acquisition.

Leveraged buy outs

Management buy outs

Corporate acquisitions

Mergers

NON REAL ESTATE TRANSACTIONS

Loan Purpose

Business acquisition, partner buyout, franchise acquisition, and start-up financing for select businesses.
Program is available nationwide to a variety of industries.

Target Businesses

A broad array of businesses including but not limited to professional services, retail, manufacturing, wholesalers/distributors, and national and regional franchise businesses.

Loan Amount

Up to $2,000,000

Interest Rate

Variable interest rate

Loan Terms

Up to 10 years, fully amortizing

Prepayment Penalty

None

Collateral

Security interest in business assets
Available equity in real estate

Personal Guarantee

Full guarantee of all principals who own 20% or more of the business

Advance Rate

Up to 100% - Acquisition financing
Up to 90% - Start-up financing

NON REAL ESTATE TRANSACTIONS - PROFESSIONAL PRACTICES

Loan Purpose

Business acquisition, partner buyout, franchise acquisition, and start-up financing for select businesses.
Program is available nationwide to a variety of industries.

Target Businesses

A broad array of professional practices including medical doctors, veterinarians, dentists, optometrisits, lawyers, insurance agents/brokers, architects, physical therapists, podiatrists, occupationa and speech therapists, and mental health practitioners.

Loan Amount

Up to $2,000,000

Interest Rate

Variable interest rate

Loan Terms

Up to 10 years, fully amortizing

Prepayment Penalty

None

Collateral

Security interest in business assets
Available equity in real estate
For medical practices, evidence of adequate malpractice insurance is required.

Personal Guarantee

Full guarantee of all principals who own 20% or more of the business
Prior ownership or management experience in a related business or industry type is required.