70+ Ways to Finance and Structure Your Business Acquisition
Hi there,
I just wanted to share this 70+ Ways to Finance and Structure Your Business Acquisition today!
Equity & Ownership:
Private Equity Investor - External Capital Injection
JV (Joint Venture) - Shared Ownership & Control
LBO (Leveraged Buyout) - Debt-Financed Acquisition
MBI (Management Buyout) - Management-Led Acquisition
MBO (Management Buyout) - Employee-Owned Acquisition
Merger - Combination of Two Companies
Reverse Merger - Public Takeover by Private Company
Roll-in - Acquiring Smaller Companies
Roll-up - Consolidating Fragmented Industry
Seller Finance - Seller Provides Financing
Earn Out - Performance-Based Payment
Royalty & Revenue Sharing:
Royalty Deal:
Seller Unit Royalty - Payment per Unit Sold
Seller IP Royalties - Payment for Intellectual Property Usage
Alternative Financing:
Asset Based Lender - Loans Backed by Company Assets
Cash Flow Lender - Loans Based on Operating Cash Flow
Revenue Lender - Loans Based on Projected Revenue
Invoice Lender - Loans Secured by Accounts Receivable
Government Programs:
SBA:
SBA 7(a) - General Business Loan Program
SBA 504 - Fixed Asset Financing
SBA Express - Streamlined Loan Program
SBA CapLine - Working Capital Line of Credit
SBA Export - Financing for Exports
SBA Microloan - Microloans for Small Businesses
SBA Disaster - Disaster Relief Loans
Debt Management:
Debt Reduction - Lowering Overall Debt Level
Debt Restructuring - Modifying Loan Terms
Debt Consultation - Seeking Debt Management Advice
Debt Assumption - Buyer Takes on Seller's Debt
Debt Subject To - Acquisition with Existing Debt
Additional Options:
Equity Split - Division of Ownership Between Parties
Earn-in Equity - Earning Ownership Through Performance
Consulting for Equity - Trading Services for Ownership
Debt for Equity - Converting Debt into Ownership
Inv for Equity - Investment in Exchange for Ownership
Supply for Equity - Supplying Goods/Services for Ownership
Co-sign - Guaranteeing Loan Repayment
Insurance Funding - Insurance Proceeds Used for Acquisition
Third-Party Barter - Trading Goods/Services with Third Party
Barter Arbitrage - Profiting from Price Discrepancies in Barter
Overstock Sell-off - Selling Excess Inventory to Fund Acquisition
Excess FFE Sell-off - Selling Unused Equipment to Fund Acquisition
Lighter RBF - Revenue-Based Financing < $3 Million
Merchant Based - Financing Based on Merchant Account Sales
Emerging Strategies:
Crowdfunding - Raising Capital from Online Crowd (< $5 Million)
Stranger Tranche PPM - Investment Offering to Unknown Investors
Fractional Rights - Ownership Divided into Smaller Units
Re-sale + Lease Back - Selling Asset with Leaseback Option
Toll-Gate Funding - Funding Based on Reaching Specific Milestones
Reverse Wholesaling - Assigning Purchase & Sale Agreements
IRA Loan - Self-Directed IRA Loan (up to $50,000)
Seller Loan + Wrap - Seller Provides Financing with Additional Guarantee
Real Estate Considerations:
Target Loc - Acquiring Property in Specific Location
Sub-lease - Leasing Acquired Space to Another Tenant
Switch-in - Replacing Tenant in Existing Lease
Intellectual Property:
Seller IP License - License to Use Seller's Intellectual Property
Cc Advance - Cash Advance Based on Credit Card Sales
Other Options:
Lease Option - Option to Purchase Leased Property
Re-Split Off - Restructuring Ownership After Acquisition
Stock Option - Option to Purchase Company Stock
Advanced Financing:
Mezzanine - Subordinated Debt Between Senior and Equity
DDP (Discounted Debt Purchase) - Buying Distressed Debt at a Discount**
PPM (Private Placement Memorandum) - Document Offering Investment**
Re Loan - Reloan of Existing Debt
Hope this helps !
I will keep adding value!
Sebastian H. Amieva