They kept triple checking everything, seeming to try to find a reason not to lend. As brokers, we kept persisting until we all met at the closing table.
Raleigh NC (PRWEB) October 27, 2011
It was not the largest sale that these experienced business brokers have made, says Sunbelt, but it was surely welcome to sell a business like this after the weak market of the last few years. The business closed for a little over $1,500,000 and although the seller took back a 10% note, most of the financing was provided by a lender using an SBA (Small Business Administration) guarantee. Although the bank financing was ultimately secured, it was not without effort. Tom Guertin, one of the business brokers involved, was asked about the financing difficulty and replied, “We are still in a period where there is a tremendous amount of caution among lenders. They kept triple checking everything, seeming to try to find a reason not to lend. As brokers, we kept persisting until we all met at the closing table.”
The $1,500,000 sale price did not include real estate or many assets other than strong earnings. It was those strong earnings that carried the transaction for the buyer and the lender. Jim Martinez, the other broker involved with the sale, said, “My experience of dealing with buyers, sellers, and lenders really contributed to getting this deal done. The real work started after the business went under contract, which many brokers don’t understand.” In the recent past, everyone involved in these transactions had what, in retrospect, was a casual attitude toward risk. Now the pendulum has swung in the other direction and it is an attitude near paranoia.
The climate for business sales does continue to improve, with the number of transactions at this Sunbelt office clearly up from last year. The buyers in the market are quite serious, but they also carry a lot of caution. Financing is certainly more readily available, which is a plus for buyers and sellers.
Sunbelt is the world’s largest business brokerage firm, with approximately 250 licensed offices located throughout the world. Annually, more than 1,400 Sunbelt brokers coordinate an estimated 3,000 Main Street and Middle Market business transactions. That is why the company says, “Sunbelt is the place to go to buy or sell a business.”
The Raleigh office of Sunbelt has been serving buyers and sellers for 25 years. There is an experienced staff of brokers with specialists in the Food & Beverage Businesses.
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