The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

Purchase Question

I would like to purchase a plush toy manufacturer listed on this site. He wants $400K plus inv $300K /claims $337K net .The problem wants all cash.I have $200K for down.I'm going to assume there is issues with cash and the books. Can somthing be worked out or move on ?

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., ""

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (7)
No User Photo

We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

Kindly acknowledge receipt of email.

Thank you.

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539

Jun 6, 2017
No User Photo
Biz2Credit LLC
New York County, NY


Biz2Credit ( can help you in getting financing for your business acquisition. Best way would be to get 3 years of tax returns and do a 4506T to verify it from IRS. In case you get a discount and pay all cash, Biz2Credit can help you to get money from lender post acquisition also.

Register for free on and chose the case manager option to get started.

Oct 25, 2010
Sigrid Caroline Schroder, JD
Sulgrave Strategies LLC
Strategic planning, development, risk assessment, mediation and turnaround

This economy has been so bad for so long that I would no jump to conclusions about the seller, however right they might have been for the climate even 5 years ago. The seller may simply be a realist and not want to deal with the issues of buyers trying to find financing. There was an article on point in the Wall Street Journal just last week, October 14, Section B1, "Businesses Put Up for Sale Smack into Harsh Reality." The seller may not want to go down the road with buyers who then don't qualify for for the financing, particularly as SBA loan guarantees have fallen off. It takes time, money and energy on the seller's side each time a buyer appears and tries to deal. The seller may well be frustrated that small businesses are drawing such low prices and may simply have made certain choices, willing to wait for the right buyer or a change in the economy. You never know unless you ask.

Oct 25, 2010
Kathryne Pusch
ConsultKAP Inc./Business Brokers Network

I would not "assume" that the books are bad because the seller is asserting he wants all cash. A number of factors could be at work here. Even in a cash deal, the buyer has the right to perform due diligence, so the seller may not be just trying to "fool" someone. More likely, the seller has not been educated about the realities of selling a small biz. The majority of potential sellers "want all cash" at the outset. If the business is very strong on paper, AND the buyer has relevant industry experience, good credit, and liquidity, the business may qualify for financing under the SBA 7 (a) Loan Program, and your $200,000 may be enough, if that is at least 20% of the purchase price. The seller will likely wind up needing to do at least "some" seller financing, even in this case, as the lender likes the seller to have some skin in the game-- and so does the buyer. If the business is offered for "all cash" by the seller (with no broker) he is making it very hard on himself to find a buyer by not hiring a professional business broker, who can educate him on the process and handle all the complicated details-- more likely to actually CLOSE the deal. If it is offered by a BROKER for those all cash terms, then it is possible that the business will NOT support a loan, and that seller will need to do some financing or find that rare buyer who wants to invest a very large amount of cash. In any event, I would not give up just yet. Maybe speak with a broker who can represent YOU and untangle some of this for you.

Oct 25, 2010
Pat Jennings


As far as the seller wanting all cash and you having only $200,000, I wouldn't let that discourage you. Most sellers start out wanting all cash. After a while they start to get more realistic. If you are looking at a business that has just been put on the market and they buyer demands all cash - be patient. Once they have dealt with a few buyers they will come to realize that an all cash buyer is rare and will usually demand a steep discount.

If the seller has been trying to sell for 6 months to a year and is STILL demanding all cash, then yes, it is probably time to move on.

Oct 8, 2010
No User Photo
The BAF Group LLC

Where there is a problem, there is usually an opportunity. Knowing exactly what the problems may be is the key to all acquisitions. You can't determine whether, or how large the opportunity might be, without it.

In this situation, lengthy due diligence may be required. That means having a top notch Accountant to dissect the books. The problem is, if the Seller is not being candid and giving you the heads up, it could take a lot of work by the Accountant, to determine what and how gib the problem may be. If that is the case, it could cost you a fair amount of money in paying the Accountant for that kind of work, only to have to walk away from it. I would start by asking blunt questions of the Seller; if you can understand the issues by looking at the Financials, as Ken suggests, so much the better. (This does not replace the Accountant's review, but it could tell you if the entire business is even worth studying in more depth.) But if the Seller is shading the truth, it may not even be worth delving into it further - you would be a better judge of that kind of decision, than I.

Oct 6, 2010
No User Photo

I'd assume cash flow problem at first glance too. If you want to get the Balance Sheet and P&L that would work to get you in the ballpark of their situation.

Oct 6, 2010

Start a Discussion