Financing the Purchase of a Small Business in the New Economy

Among the biggest challenges for people buying and selling small businesses in this, the New Economy, is the difficulty obtaining the money needed from financial institutions to complete deals. Funds needed for business purchases—like funds needed in many sectors of the economy, started to dry up following the financial crisis of 2007 and 2008. The result has been the drop in the rate of small businesses transfers since then. This problem has a significant impact on the growing numbers of buyers—people who are discouraged by problems in the job market--and want to take over an existing company. And it impacts the expanding population of “Baby Boomer” business owners ready to retire and seeking someone to take ownership of their companies. It is possible to get the money you need, says Peter Siegel, MBA, who has helped buyers, sellers and business sales intermediaries with small business funding for more than 20 years. His advice centers on new ideas and approaches, shaped by the realities of the New Economy. He shares, in this work, the strategies that enable him to help clients get their loan applications approved and achieve their economic goals despite the growing challenges in the business for sale marketplace.