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Funding a purchase of an existing business.

I am looking at purchasing a profitable existing business where the seller is willing to finance 50%. I am looking to get the other 50% finance through either a bank or investor. I am have about 25% to put in of the second note. The busines profits will cover both notes. Is there someone who can direct me in the right direction?

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Answers (6)
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Ritch & Associates
Henderson County, NC

Chris there are several options for raising the capital you need. I consult with business owners and buyers and would love to discuss your options with you. There are to many moving parts to be able to answer you with a direct solution in this forum.

Feb 24, 2010
Robert Cutler
Attorney
New York County, NY

Chris, I'm not sure if the first poster below is going to suggest this, but if you have the other 50% available in a 401(k) that is eligible for rollover you could roll it into a self-directed IRA and the self-directed IRA could invest the funds into an acquisition vehicle that you can use for the purchase. I know of some entrepreneurs who have used this strategy in the past to finance their purchase but it is very complex and it has to be structured properly to avoid any tax issues (you should not even think about attempting it without talking to a qualified tax attorney).

Feb 22, 2010
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Dallas County, TX

yes its a restaurant w/ bar

Feb 22, 2010
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How to Buy a Business
WA

Is it a restaurant?

Feb 22, 2010
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Dallas County, TX

Yes I have a 401k.

Feb 22, 2010
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Do you have a 401k, or an IRA?

Feb 19, 2010