BUSINESS ACQUISITION FINANCING
Financing for the Purchase of an Operating Business.
Acquiring a business requires underwriting the company being purchased as well as the buyer. Historical cash flow, purchase structure, management experience, equity and any real estate included in the transaction all matter.
Where This Financing Can Fit
Business acquisition financing may involve SBA-related structures, conventional business credit or other capital depending on the company and transaction.
The purchase agreement, historical business performance, buyer qualifications, equity contribution and post-closing plan form the core of the credit story.
What We Evaluate
Residential versus commercial use
Unit and tenant mix
Current occupancy and lease status
Property income and operating expenses
Purchase price or estimated value
Requested leverage, borrower profile and timing
The Structure Depends on the Deal
There is no single financing structure for every mixed-use property. A stabilized asset with established tenants can present differently from a property with vacancy, renovation needs or a changing tenant mix.
Lee Commercial Capital starts by understanding how the property actually operates, then evaluates financing channels that may fit the transaction.
Common Transaction Scenarios
Acquisition
A purchase can require a structure tailored to the asset, business or timing.
Refinance or Recapitalization
Existing debt, maturity and the purpose of new capital should be evaluated together.
Transitional Need
Renovation, vacancy, expansion or another change can affect the appropriate lending channel.
Long-Term Objective
The financing should make sense in the context of the borrower's plan, not just at closing.
What to Have Ready for an Initial Review
Transaction: purpose, requested amount, timing and use of proceeds.
Financial information: available property or business operating history and current performance.
Supporting documents: contracts, budgets, plans, leases or acquisition documents relevant to the request.
Borrower: ownership, experience, liquidity, credit profile and equity contribution.
Questions to Address Early
What is the primary financing objective?
The requested structure should be tied to the transaction’s actual purpose and timing.
What could complicate underwriting?
Vacancy, documentation, project scope, business performance, property condition and timing should be identified before approaching capital sources.
What is the repayment or exit plan?
A clear path to repayment, stabilization or longer-term financing helps frame the request.
Ready to Discuss the Transaction?
Send us the property, requested financing amount, occupancy or income information, and timing. We’ll start with the transaction.
Discuss Your Deal