Determining my feasibility to secure finance & buy a business

[Mr JJC]

[FONT='Verdana','sans-serif']Hi all,[/FONT]
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[FONT='Verdana','sans-serif']I am currently employed in a large organisation and have been told by one of my customers recently that he wishes to sell his business and retire. [/FONT]
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[FONT='Verdana','sans-serif']I have often thought about working for myself, and have been doing good business with this particular customer for almost 10 years now. This may be an opportunity for me. From what I have seen it is a good business model, and I already have a good understanding of what he does as my company supplies to him. [/FONT]
[FONT='Verdana','sans-serif'] [/FONT]
[FONT='Verdana','sans-serif']I am considering showing more formal interest but before I go that far I would appreciate your advice on how I go about determining my feasibility to secure the necessary finance. I have some capital set aside already but certainly not enough to buy the business at the moment. [/FONT]
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[FONT='Verdana','sans-serif']Thank you in advance.[/FONT]

 

[tony84]

Commercial mortgages are not really my strong point.

The bits im aware of though are that you generally need to be putting down a minimum 30% deposit.

Im not sure if you need to secure any lending against a personal property or not. I would go and speak to your bank and a commercial mortgage advisor.

DONT do any credit checks until you have to.
Also have you spoke to the bloke about an asking price? He might be prepared to lower the price and still keep say a 10% share. Many people find it difficult to fully retire - so that could help you potentially?

You may also need a business plan in place.

 

[Mr JJC]

Hi Tony,

Thanks for your response.

Yes, I have spoken with him regarding his asking price, and he would also be prepared to stay on for a cetain time period once the business was sold.