FINANCE THE ACQUISITION OF YOUR TAX AND ACCOUNTING PRACTICE.
ProHorizons takes a leadership role in working with accounting practice buyers to secure the best business acquisition loan available to them. Call us at 866-570-8270 for a confidential conversation about your situation.
How Does ProHorizons Take a Leadership Role?
We take an active hand in working with buyers and sellers to secure financing for an accounting practice acquisition. We are involved in every step of the process:
- We work with both parties to gather all the necessary documentation and create a loan package.
- We submit the loan package to our preferred lenders that we feel are the best fit for the borrower and the loan requirements.
- We have the relationships and leverage to work with our lenders and address all of their needs to get the loan approved.
- We then work with the buyer and seller to help them finalize the transaction and get the loan closed.
- We do not just provide you with a list of lenders and send you on your way.
We work with a large range of clients and will be happy to assist you whether you are acquiring one of our listings, putting together an acquisition on your own or buying a practice through another broker.
Why Consider Outside Financing?
Benefits to You as the Buyer:
- Preserve Your Cash. Securing a loan from an outside lender is the most reliable and successful method of funding an accounting practice acquisition without using all of your cash reserves.
- Enhance Your Offer to the Seller. The seller, like you, desires to preserve cash. You honor this when you take the burden of funding off the seller, which means the acquisition is more likely to close and be successful. If you were selling your business, how much would you want up front?
- Gain Autonomy. By providing a larger down payment through outside financing, you reduce the seller’s sense of risk and investment in the practice after transfer of ownership. This will result in more autonomy of ownership and decision making for you as the new owner, and enable the seller to focus on the transitional role of "advisor" rather than "creditor."
- Extend Loan Terms/Improve Cash Flow. Anyone who owns a business knows the importance of cash flow. Through outside financing you can secure up to 10 year repayment terms which will dramatically reduce cash requirements compared to the 3 to 5 year terms required on most seller notes.
- Insure Sufficient Capitalization. In any business, particularly one with seasonality, having sufficient cash reserves to carry you through slower times is critical. This is even more important in the months following an acquisition. Depending on the circumstances we can sometimes secure working capital in addition to an acquisition loan to help new owners through those first few months.
Benefits to You as the Seller
- More Cash at Closing. “A bird in the hand is better than two in the bush.” You can choose your favorite saying, the fact is there is more security and peace of mind when you get cash in hand.
How Can ProHorizons Help You?
We are going to work for you to secure the best loan possible. Having worked on and closed hundreds of loans over the past eight years we know the key barriers to securing financing and how to navigate the path to getting a loan closed. Our expertise is invaluable when serious loan issues arise. In addition, our very strong relationships with preferred lenders enable us to get responses and results in a more timely manner.
CALL US AT 866-570-8270 FOR A CONFIDENTIAL CONVERSATION ABOUT YOUR LOAN REQUIREMENTS.
Below are three examples of loans we have rescued from the underwriter's trash can...and brought to a successful close:
Issue Example One:
A conventional loan we did in California last year was approved and ready to close. The lender was requiring a document to be signed by the landlord and after reviewing the document the landlord had no intention of signing it. Without this document the loan does not close. We contacted the landlord and found out specifically what they had concerns about. We communicated those concerns to the lender. Neither side was willing to budge. We got the landlord on the phone with the lender and talked everything through. We had to go back and forth a few times but ultimately we were able to come up with a compromise and get the loan closed.
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Issue Example Two:
An SBA loan we were putting together for a CPA in Florida was having problems due to the appraisal coming in well below the agreed to selling price for the practice being acquired. More and more SBA lenders are requiring 3rd party business appraisals for the acquisition loans they are doing. It was so far off we knew we would not be able to move forward. The underwriter put me in touch with the company that did the appraisal. We went through how he was looking at everything and found an error in his cash flow calculation. He was able to increase the value of the firm and we were able to get the loan closed.
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Issue Example Three:
A CPA called us looking for help with a loan to buy an accounting firm he was interested in buying. He had spent quite a bit of time working with his local bank on an SBA loan only to have them come back and tell him they were not able to do the loan due to lack of hard assets. We took the same loan package he provided the local bank and screened it with one of our SBA lenders. They provided a loan proposal in about a week and we had a commitment letter about one week later. A common misconception about SBA loans is that they are all underwritten the same way by all banks. This could not be farther from the truth. Knowing which lenders are the best to work with for specific types of deals can save a lot of wasted time when trying to put a loan together.
Call us at 866-570-8270 for a confidential conversation about your situation.
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