Hello, first post on the forums so hope you guys don't mind. I've searched the forums but can't find specific answers to my questions.
Business purchase background: We are hoping to purchase a well established business that has been operating for 20 years. Location is the key as the business has no real competition. Business is tourism related. Consists of accommodation/ quality restaurant. My family have a good grounding in this business field.
Our assets: Very modest assets. Home value conservatively $450/$470k bank valuation. We owe $120k on the property. Zero other debt of any kind. No other real assets other than two small cars and the usual furniture. We lead a pretty simple lifestyle.
Business purchase will be $500k plus cap injection of funds of $70k approx so total of $570k loan approx required.
Business figures: EBITDA 2010 $208k, 2011 $307k, 2012 $276k, 2013 new mgr appointed and business went backwards to $81k, 2014 business is now back on track with old mgr reappointed and will produce $300k plus EBITDA again.
The business is very sound although there are further savings that can be made in numerous areas.
All fitout and stock included in the price.
That's the basics of what I'm looking at.
Question: We have had one business loan in our lives for $58k. Paid back in full pretty quick. We have had several housing loans over the years. No defaults.,
May I receive feedback on possible loan options please with a part security over our home.. Possible or not?
I am open to all possible ways to finance if the numbers stack up and are competitive.
I'm yet to run the figures past my accountant for appraisal...
All feedback most welcome.
Cheers.
Business purchase background: We are hoping to purchase a well established business that has been operating for 20 years. Location is the key as the business has no real competition. Business is tourism related. Consists of accommodation/ quality restaurant. My family have a good grounding in this business field.
Our assets: Very modest assets. Home value conservatively $450/$470k bank valuation. We owe $120k on the property. Zero other debt of any kind. No other real assets other than two small cars and the usual furniture. We lead a pretty simple lifestyle.
Business purchase will be $500k plus cap injection of funds of $70k approx so total of $570k loan approx required.
Business figures: EBITDA 2010 $208k, 2011 $307k, 2012 $276k, 2013 new mgr appointed and business went backwards to $81k, 2014 business is now back on track with old mgr reappointed and will produce $300k plus EBITDA again.
The business is very sound although there are further savings that can be made in numerous areas.
All fitout and stock included in the price.
That's the basics of what I'm looking at.
Question: We have had one business loan in our lives for $58k. Paid back in full pretty quick. We have had several housing loans over the years. No defaults.,
May I receive feedback on possible loan options please with a part security over our home.. Possible or not?
I am open to all possible ways to finance if the numbers stack up and are competitive.
I'm yet to run the figures past my accountant for appraisal...
All feedback most welcome.
Cheers.