Entrepreneur Uses a Commercial Loan to Purchase a Theme Park

Entrepreneur Uses a Commercial Loan to Purchase a Theme Park

Background

A former consultant and Harvard Business School graduate with extensive experience in managing large businesses wants to purchase a renaissance theme park. The business is 28 years old with a strong cash flow.

The Need

The entrepreneur needed to value the business and finance the acquisition.

Financial Solution

Biz2Credit reviewed the financial statements of the business and the personal financial statement of the entrepreneur. After understanding the nature of the business, Biz2Credit recommended that the entrepreneur conduct an appraisal of the business's going-concern value and apply for a loan through the United States Department of Agriculture's (USDA) business and industry program. The entrepreneur received a loan for 75 percent of the business price. Additionally, Biz2Credit suggested the seller to provide 5 percent as a seller note.

Results

  • Received funding for 80 percent of the business price
  • USDA loan provided at 7 percent with 20 year term

Benefits

  • Going-concern assessment boosted appraisal value
  • Fast approval

The entrepreneur received a loan for 75 percent of the business price. Additionally, Biz2Credit suggested the seller to provide 5 percent as a seller note.