Acquire a Business with Confidence
Navigate the business acquisition process with expert guidance from Seventh Economy. We help you find, evaluate, and acquire the right business to achieve your growth and investment goals.
Why Buy an Existing Business?
Acquiring an established business offers significant advantages over starting from scratch. Consider these compelling benefits when planning your entrepreneurial journey.
Immediate Cash Flow
Unlike startups that may take years to become profitable, established businesses often provide immediate positive cash flow, helping you recoup your investment faster.
Established Customer Base
Gain instant access to an existing customer base and revenue stream, eliminating the challenging early-stage customer acquisition process.
Proven Business Model
Benefit from a business model with a proven track record of success, reducing the risk and uncertainty associated with new ventures.
Brand Recognition & Reputation
Leverage established brand equity, market presence, and reputation that would take years to build from the ground up.
Trained Workforce
Inherit an experienced team with institutional knowledge, reducing hiring and training costs while maintaining operational continuity.
Established Systems & Processes
Take advantage of refined operational systems, vendor relationships, and business processes that have been optimized over time.
Easier Financing
Banks and investors often view established businesses with proven financial histories as lower-risk investments, potentially making financing more accessible.
Growth Potential
Identify businesses with untapped potential that can be unlocked through your expertise, investment, and fresh perspective.
Buy vs. Start Comparison
Buying a Business
- Immediate revenue generation
- Established customer relationships
- Existing operational infrastructure
- Historical financial data for planning
- Trained employees and management
- Higher initial investment
Starting a Business
- Complete control over business vision
- No inherited problems or liabilities
- Potentially lower initial investment
- Delayed profitability (often years)
- High failure rate (70% within 10 years)
- Time-consuming customer acquisition
The Business Acquisition Process
Acquiring a business is a structured process that requires careful planning, thorough evaluation, and expert guidance. Our proven approach helps you navigate each step with confidence.
Acquisition Strategy
We begin by understanding your acquisition goals, industry preferences, financial parameters, and timeline. This helps us develop a targeted acquisition strategy aligned with your objectives and capabilities.
Business Search & Identification
We leverage our extensive network, proprietary database, and market research to identify businesses that match your criteria. This includes both on-market and off-market opportunities that may not be publicly available.
Preliminary Evaluation
We conduct initial assessments of potential acquisition targets, analyzing financial performance, market position, growth potential, and alignment with your acquisition criteria before presenting them for your consideration.
Initial Contact & NDA
Once you express interest in a business, we facilitate initial contact with the seller and execute non-disclosure agreements (NDAs) to protect confidentiality and allow for the exchange of detailed information.
Detailed Analysis
We help you conduct a comprehensive analysis of the business, including financial statements, operations, customer base, competitive position, and growth opportunities to determine its true value and potential.
Valuation & Offer Strategy
We assist in determining an appropriate valuation for the business and develop an offer strategy that considers market conditions, the business's financial performance, and your investment parameters.
Letter of Intent (LOI)
We help you prepare and negotiate a Letter of Intent that outlines the proposed purchase price, terms, conditions, and timeline for completing the transaction, securing your position as the buyer.
Due Diligence
We coordinate a thorough due diligence process, examining financial records, legal documents, operational systems, customer relationships, and potential risks to verify all aspects of the business before proceeding.
Financing & Deal Structure
We assist in securing optimal financing through our network of lenders and investors, and help structure the deal to maximize tax advantages, minimize risk, and ensure a smooth transition of ownership.
Closing & Transition
We coordinate the closing process with all parties involved and support you through the transition period, ensuring a smooth handover that preserves the business's value, relationships, and operational continuity.
Who We Help
We work with various types of buyers, each with unique objectives and requirements. Our tailored approach ensures that we meet the specific needs of every client.
Individual Entrepreneurs
First-time business owners or experienced entrepreneurs looking to acquire a business to operate personally.
We provide:
- •Guidance through the entire acquisition process
- •Business evaluation and valuation support
- •Financing assistance and SBA loan guidance
- •Transition planning and operational support
Strategic Acquirers
Existing businesses looking to grow through acquisition, expand into new markets, or acquire competitors.
We provide:
- •Strategic acquisition target identification
- •Synergy analysis and integration planning
- •Competitive market intelligence
- •Complex deal structuring and negotiation
Financial Buyers
Private equity firms, family offices, and investors seeking businesses with strong returns and growth potential.
We provide:
- •Deal sourcing aligned with investment criteria
- •Financial analysis and growth opportunity assessment
- •Portfolio company add-on acquisition strategies
- •Management team evaluation and development
Due Diligence Expertise
Thorough due diligence is critical to a successful acquisition. Our comprehensive approach helps you uncover potential risks and verify the business's value before completing the purchase.
Financial Due Diligence
A thorough examination of the business's financial health, performance trends, and future projections.
- •Analysis of financial statements and tax returns (3-5 years)
- •Revenue verification and customer concentration analysis
- •Expense structure and profitability assessment
- •Working capital and cash flow analysis
- •Asset verification and valuation
Legal Due Diligence
Comprehensive review of legal documents, contracts, and potential liabilities to identify and mitigate risks.
- •Corporate records and ownership structure review
- •Contract analysis (customers, vendors, employees)
- •Intellectual property verification
- •Litigation history and potential legal exposure
- •Regulatory compliance assessment
Operational Due Diligence
Evaluation of business operations, processes, and systems to ensure functionality and identify improvement opportunities.
- •Operational processes and efficiency assessment
- •Technology systems and infrastructure review
- •Supply chain and vendor relationship analysis
- •Capacity utilization and scalability assessment
- •Quality control and operational risk evaluation
Commercial Due Diligence
Analysis of market position, competitive landscape, and growth potential to validate the business's commercial viability.
- •Market size and growth trend analysis
- •Competitive positioning assessment
- •Customer satisfaction and loyalty evaluation
- •Sales pipeline and marketing effectiveness review
- •Growth opportunity validation
Our Due Diligence Approach
We coordinate a comprehensive due diligence process that protects your interests while maintaining deal momentum:
- 1.Customized due diligence checklist based on the specific business and industry
- 2.Coordination with specialized professionals (accountants, attorneys, industry experts)
- 3.Secure data room management for efficient information exchange
- 4.Regular progress updates and findings review
- 5.Comprehensive due diligence report with risk assessment and recommendations
Acquisition Financing Solutions
Securing the right financing is crucial to a successful acquisition. We help you navigate various financing options and connect you with our network of lenders and investors.
SBA Loans
Small Business Administration (SBA) loans offer favorable terms for business acquisitions, including lower down payments and longer repayment periods.
- •SBA 7(a) loans for most business acquisitions
- •SBA 504 loans for real estate and equipment
- •Typically 10-25% down payment required
- •Repayment terms up to 25 years
Conventional Bank Financing
Traditional bank loans for qualified buyers with strong credit profiles and businesses with solid financial performance.
- •Term loans for business acquisition
- •Lines of credit for working capital
- •Equipment financing options
- •Typically requires 20-30% down payment
Seller Financing
Arrangements where the seller accepts partial payment over time, often used to bridge financing gaps and align seller interests with future success.
- •Typically covers 10-30% of purchase price
- •Demonstrates seller confidence in the business
- •Often has more flexible terms than bank financing
- •Can include performance-based payment structures
Private Equity & Investors
Equity capital from investment firms or individual investors for larger acquisitions or growth-oriented opportunities.
- •Full or partial equity investments
- •Strategic guidance and industry expertise
- •Growth capital for expansion post-acquisition
- •Typically requires sharing ownership and control
Mezzanine Financing
Subordinated debt that bridges the gap between senior debt and equity, often used in larger acquisitions with complex capital structures.
- •Higher interest rates than senior debt
- •Often includes equity components (warrants)
- •Minimal or no collateral requirements
- •Flexible repayment terms
Creative Financing Structures
Customized financing solutions that combine multiple sources of capital to optimize the acquisition structure.
- •Earnouts tied to future performance
- •Royalty-based financing arrangements
- •Asset-based lending solutions
- •Leveraged ESOP structures
Our Financing Assistance
We provide comprehensive support to help you secure the optimal financing for your acquisition:
- •Assessment of your financial qualifications and options
- •Introduction to our network of lenders and investors
- •Preparation of comprehensive loan packages and financial projections
- •Negotiation of financing terms and conditions
- •Coordination with lenders throughout the closing process
What Our Clients Say
Hear from business owners who successfully sold their companies with Seventh Economy's guidance.
Michael Johnson
Business Owner
"The valuation report provided by Seventh Economy was comprehensive and insightful. It gave me a clear understanding of my business's worth and helped me make informed decisions about my exit strategy."
Sarah Thompson
Financial Advisor
"As a financial advisor, I've worked with several valuation firms, and Seventh Economy stands out for their thoroughness, expertise, and clear communication. Their reports are detailed yet easy to understand."
David Rodriguez
Attorney
"The certified valuation report from Seventh Economy was instrumental in resolving a complex partnership dispute. Their methodology was sound, and their expert testimony was invaluable."
Ready to Know Your Business's True Value?
Contact us today to discuss your business valuation needs and discover how our expert appraisers can help you make informed decisions about your business's future.