FAQ’s for a Business Broker
Frequently Asked Questions
Should we hire Transaction Attorney, CPA and Escrow Agent to finalize a transaction?
What types of businesses do you work with?
How are you different from other business brokers in Dallas?
What options exist for Business Acquisition Financing and how do you help secure loans?
- A Small Business Loan(SBA Loan) – These loans can be obtained from banks and other lending institutions anywhere in the United States. This process requires the buyer to provide their own personal financial information and well as the financial information from the business the buyer is seeking to acquire. This takes anywhere from 60 days to 120 days once the lender has received all the information needed to process the loan application. Usually, advisors and brokers can refer banks and loan officers that have done good jobs in the past, but they are not able to help the buyer secure the loan.
- Conventional Loans– These loans usually are harder to secure and have higher interest rates than SBA Loans, but they may be easier to secure if the buyer has a relationship with the bank or lending institution. Again,advisors and brokers are not usually able to help buyers secure these conventional loans.
- Owner Financing– In some rare cases the business owner is willing to provide the financing for the purchase of their business. There are several reasons for this, but the most frequent reason is that the owner is selling their company to a friend, relative, employee or management team that he knows well and trusts. In these cases, the advisor or broker can help the owner determine the kind of structure that would accomplish the goals that the owner wants to achieve. The advisor or broker can also provide the buffer between buyer and seller that can help facilitate the negotiation of the terms of the promissory note or interest rate that is established. DBG Advisors has and will help in this way.
Why is an NDA required and what information can be gained after signature?
Once an NDA is signed the seller is more comfortable disclosing information about his/her company. Things like name, location, operation details, ownership percentages, and private information. However, even with an NDA in place, the owner would still not be comfortable revealing their client list or other proprietary information that could be used by a competitor to their advantage. It is always wise to protect confidential information even if an acquisition is being discussed.
Can you assist with management buyout (MBO)?
How does a buy-side broker get paid?
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