Many factors drive the process for finding the right buyer. Sales price, location, type of business, owner's available compensation, down payment, financing, terms and conditions, and availability of buyers. This is a down payment driven transaction. The more reasonable the down payment the larger the number of available buyers. The majority of small to medium business transaction have some form of owner financing which is paid from the revenues of the business.
Banks are reluctant to finance business purchases for several reasons.
A major reason is that all small businesses attempt to minimize profits shown on financial statements to reduce tax liability. Also, a bank cannot come in and manage a business if foreclosure becomes necessary. Therefore, over ninety percent of business purchases are financed by the owner themselves, which demonstrates their confidence in the ongoing success of the business. All negotiations are handled at arms length through your Sunbelt Business Broker. The primary reason is to maximize the price you can get for your business, but just as importantly is to facilitate a smooth transition of the business under new ownership.