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Opportunities for Growth with Business Acquisition

December 03, 2017

As an entrepreneur, you spend a lot of time, energy and dollars on growing your business. The opportunist in you, however, is always looking for new ways to increase business value. Business acquisition allows you to increase market share, diversify services, acquire new technologies or eliminate future competition.

Is it a good fit?

Finding a business to buy requires thorough research and a finger on the pulse of your industry. How does the acquisition add to your company’s services and increase value? When you find a potential company, consider the company’s growth rate, profitability, financial track record, revenue, cash flow, number of employees, products, etc. Assessing what a company’s brand and culture fits into yours will help you see how the transition could look like if the acquisition is made. If you learn about a company (maybe even a direct competitor) willing to sell at a competitive price, you should still do a full evaluation of the company’s financial history.

When the research is done and you find the perfect fit, you’ll need capital. In my commercial banking experience, I know that getting to the closing table requires adequate financing options.

Business Acquisition Loan Options

There isn’t an official business acquisition loan, but these are most commonly used for business acquisition.

  • Traditional term loan. This loan is paid back with interest, over a fixed period of time, up to ten years.
  • SBA 7(a) loan. This is a long-term loan that is partially guaranteed by the government, and is paid back over five to 25 years. SBA loans are intentionally designed to help small business grow.
  • Equipment financing. This loan allows you to purchase new and used business equipment, and then the equipment will be used as collateral.

At The Bank of San Antonio, we are uniquely positioned to provide competitive options for business acquisition purchases up to five million dollars. We’ll find the best loan to fit your needs and walk you through the entire process from application to closing to servicing the loan.

I joined The Bank of San Antonio in June of 2017 after nearly 10 years with another San Antonio community bank. Watching The Bank of San Antonio grow at a pace two to three times faster than the bank I worked for and knowing its excellent reputation convinced me to join the commercial banking team. In my time here, I’ve quickly learned the principles that guide the high quality of customer service we provide our clients. I learned: 1) we act fast, 2) we solve, not sell and 3) at The Bank of San Antonio, everything is personal.

Ready to expand your business?

In 2007, a group of local investors brought a new business model to banking based on strong relationships, knowledgeable strategies and concierge-quality service. We work hard to understand the banking needs of customers and prospective customers, and we offer the best technology and operations platform in the market.

If you would like to discuss your business purchase, you can reach out to me, Chris Davenport, at 210-424-8769 or email me at [email protected].