$940,000 – SBA Loan for Manufacturing Business Acquisition

A established South Florida glass manufacturing business had enjoyed stabilized success for many years. However, the owner’s wife was ready to travel and start enjoying life more. She said, “Retire and sell the business, or find a new wife!” 😂

As we’ve previously discussed, there has been a powerful early shift towards retirement as the Baby Boomer’s generation shifted priorities after the pandemic. Because of this, we are seeing more businesses for sale than ever, and at competitive prices. However, some businesses are so specialized that they find it difficult to find a buyer with industry-related experience – and this rare manufacturing business was one of them.

Remember, in order to obtain an SBA loan for a business acquisition, the buyer must meet three (3) prerequisites: credit, liquidity, and experience.

Typically, buyers find challenges in the liquidity or the experience.

But what counts as experience?

• DIRECT Experience: You’ve operated or worked at that specific type of business, or in that specific industry – a mechanic buying an auto shop, a lifelong food server buying a restaurant, an interior designer buying a furniture shop.
  

• INDIRECT Experience: Previous business ownership, managing, consulting, or any other high-level skill that could assist in another industry.

• EDUCATION: College degrees such as a bachelor’s degree in a specific industry, or in management/general business. Also trade school certificates, craft licenses.

Our client, although not an experienced glass manufacturer himself, had plenty of experience that would make him an excellent candidate to own this business. For example, while looking at his engineering background, we discovered that he had INDIRECT business management experience – as a project manager at a successful and busy engineering firm – that was transferable to many aspects of the glass-making business.

Another strong experience factor we considered was his Education – which included a Masters in Engineering, business foundation courses, and even some specialized training in glass engineering processes. While it’s not on-the-job practice, education can still count as experience — especially if it is in business, management or in direct relation to the industry you’re buying a business in.

Now that you know more of the different ways that we weigh “experience” – how many types of businesses acquisitions can we qualify you for?

To start the discussion, submit your loan inquiry today by emailing us at info@comcapfl.com or simply call our specialists at (888) 959-1648.

 
Are you ready to own your own business, but unsure where to start? Stay prepared with a complimentary Loan Pre-qualification Letter. With Loan Finder, you can get started in minutes – no uploads, obligation or secure information required: