Financial Tools
We work with several local, regional and national lending sources to help qualified Buyers purchase accounting practices. The purchase of an accounting firm will usually qualify for SBA and conventional financing.
We can assist in all phases of the financing. We can assist the Buyer in preparation of the application package for the Lender. Once the loan approval has been obtained, we assist the Buyer, Seller and Lender to keep the process moving.
Seller Financing
A high percentage of acquisitions use a combination of external financing sources and Seller financing. Seller financing can take the form of a short-term or a longer-term note. Seller notes are usually more flexible than external financing. Seller financing for a portion of the purchase price has the following advantages:
Seller Advantages
The interest rate on the loan is often much higher than conservative investments.
The Seller is taxed in the year the cash is received with regard to the sale of the firm. Therefore, the tax liability is spread out over a number of years.
Buyer Advantages
The Seller will have more of an incentive to work with the Buyer concerning client and employee retention if the Seller still holds a note from the Buyer.
