State Business Brokers, Inc.

Sales of Businesses and Properties in the State of Michigan

Breadcrumbs

Search

HOW IS AN OFFER STRUCTURED?

Most businesses sell for one-third to one-half down. The remainder is financed by the Seller, by a bank or through family resources.

Sellers generally prefer to receive all cash at closing and some Buyers are able and willing to accommodate them. However, Buyers are usually trying to get the most bang for their buck and will want to leverage their down payment into the largest business they can buy.

Although, Buyers may want to make a no-money or low-money down offer, it is very rare that they will succeed. Usually a business cannot earn enough to pay salary to the owner and service such a level of debt. In addition, the lender, whether it is the seller or a bank, wants the Buyer to show his commitment to the business by having vested financial interest in its success.