After a dentist with a successful dental practice had a conversation with one of our brokers about growing his dental practice, the broker and dentist discussed several options. One of the options was to purchase real estate and construct a new building that would accommodate more clients and the other was to acquire another dental practice that was ready to sell and that met the needs of the acquiring dentist. The second option would involve the dentist’s participation in CBI’s Target Acquisition Program (TAP) and was the option pursued by the dentist, since it would allow the dentist to accomplish his goal more quickly.
The broker began the work involved in a TAP, which included identifying target businesses (dental practices) that the buyer (dentist) would be interested in acquiring and then reaching out to the owners of those businesses to determine if they were interested in selling.
It didn’t take too long for the broker to identify two practices that the dentist had interest in acquiring – and one of them happened to be partially owned by the broker’s personal dentist. Since a partner was involved, the broker also met with the partner in order to be sure that the partners were in agreement about the sale of their dental practice.
After some due diligence and the dentist determining that he did want to acquire this particular dental practice, the broker also encouraged the dentist to utilize the Loans4Biz program to obtain financing options for the acquisition.
The dentist agreed to utilize Loans4Biz, but he let the broker know that he was already working with a well-known lender to help with the loan needed for the acquisition.
Kelly Tivis, the Loans4Biz Program Administrator, worked with the buyer and seller to prepare all documents typically required by lenders who are interested in financing acquisitions. Those documents were then uploaded to a Confidential Deal Room (CDR) for review by interested lenders.
More than one lender was interested in the deal, so Kelly gathered them and kept the dentist notified about his other financing options. So, when the day came that the dentist was notified by the well-known lender that they couldn’t finance the deal the way it had been structured by the buyer and seller, the dentist knew he had other options and he quickly pivoted to a proposal from a second lender that had been obtained through the Loans4Biz program. Since the second lender was already familiar with the deal, the acquisition was completed in a matter of a couple of weeks.
The Loans4Biz program saves participants time and money by offering the following benefits on most deals:
– Assistance with gathering and completion of documents required by most lenders
– Initial communication with all lenders managed by the Loans4Biz program manager
– Much better chance of finding a lender who is interested in providing a loan
– A number of financing options presented for consideration
– Thousands of dollars of interest saved over the full term of the loan
– The option of closing quicker when that is a preference
Although the Loans4Biz program was created to assist buyers of businesses listed by CBI, the benefits of using the Loans4Biz program are available to anyone who needs assistance with financing…whether or not you are buying a business listed by CBI.
To learn more about the Loans4Biz program, contact Kelly Tivis @ 479-770-8989 or kelly.tivis@cbiteam.com
