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Grow Your Manufacturing Business Through Acquisition with No Money Down

No Money Down
⏱ Reading Time: 2 minutes

Growing through acquisition is the smart way to gain:

  • Increased Market Share
  • Geographic Range
  • More Customers
  • Increased Sales & Profits
  • Skilled Workers
  • Unique Product Offerings
  • An Edge Over Your Competitors

Many realize that acquisition beats organic growth on so many levels. What you might not realize is that it’s possible to grow your manufacturing business through acquisition with no money down. Here’s how:

If you have a well-defined strategy for expansion and a proven business model, you may qualify for a special expansion loan through our friends at Live Oak Bank. Here are some additional qualification requirements:

  • The existing operation needs to be in business for at least one year.
  • The existing entity needs to be the borrower if it’s the buyer. If you’re forming a new entity to make the acquisition, both the existing entity and the new entity need to be co-borrowers.
  • If a new entity is created it must have the same ownership structure as the existing entity.
  • The existing business model needs to be similar to the target acquisition (in the same industry).

Manufacturers are sometimes fearful of growing through acquisition because they don’t want to take on additional debt or infringe upon their cashflow to make a down payment.

In the above scenario, there would be no down payment required AND the acquisition target’s cashflow would cover the debt service.

Growing your manufacturing business through acquisition might be easier than you think and you might be able to accomplish it with no money down.

For more information about this Live Oak Bank loan program reach out to:

no down payment

Paul Moreno

Vice President
Mergers & Acquisitions
Paul.Moreno@liveoak.bank

 

If you love the idea of growing through acquisition, but you haven’t found the right company to buy, we can help. Tell us what your perfect acquisition looks like HERE.

About Frances Brunelle

Frances Brunelle is the founder of Accelerated Manufacturing Brokers, Inc., which specializes in the sale of lower middle-market manufacturing companies nationally. Fran and her team help to ensure the continuity of U.S. Manufacturing by transitioning ownership to the next generation of entrepreneurs. Recently Fran was named to 2020 Most Influential Women in Mid-Market M&A (Mergers & Acquisitions). Fran is also the host of the WAM (Women and Manufacturing) podcast, a Jacket Media production. Fran writes on topics that help manufacturing business owners prepare their companies for sale and navigate the sale process to ensure a positive financial result in support of their retirement.

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