AmiSight 10/17: Do You Need An Investor To Help Buy Your Next Business
Last week I met with two entrepreneurs who are in the process of looking for investors to help them buy their next business. My advice was: not so fast.
In both cases, these entrepreneurs could buy the size businesses they were looking for without an investor by leveraging an SBA loan. And with this new information, they needed to think long and hard about why they were looking for an investor.
Remember, when you take on an investor, you just got married or married again. So it would help if you took the time to get to know each other well before running to the alter (Completely the opposite of what Shark Tank teaches our kids).
When taking on an investor, you also need to consider if they would be willing to guarantee future debt that the company needs personally. If not, they need to own under 20% of the company.
Interested in learning more? Join us for a webinar Business Acquisition Financing Tips this Wednesday at 12PM EST. for lots of acquisition tips.