Acquiring a business can feel like a minefield – there are so many things to consider. At Swoop, we get it. That’s why we’ve broken it down into these simple steps so you have everything you need to know about acquiring a business, how to conduct due diligence, and where to find a business to acquire.
It’s early days. Let’s make sure you’ve got all the basics covered so you’re all set for the next step in your journey.
It’s now time to make sure you have the capital available to acquire your chosen business. Review a range of options that will help you acquisition.
Get expert advice on how to thrive.
From due diligence, to a merger strategy, find out how to plan a successful acquisition.
| Feature | SBA 7(a) loan | Seller financing | Acquisition loan | Equity investment |
|---|---|---|---|---|
| Access to funds | Lump sum, partly government-backed, issued by a participating lender | The seller agrees to accept part of the price over time, rather than all of it upfront | One-off lump sum | Capital from an investor in exchange for a share of ownership |
| Interest | On the full amount | Negotiated directly with the seller | On the full amount | None, there’s no interest or scheduled repayment |
| Term | Up to ten years, longer if real estate is part of the purchase | Negotiated directly with the seller, commonly three to seven years | Typically up to ten years | No fixed term, investors exit through a future sale |
| Ideal for | Acquiring an established business, for buyers who meet SBA eligibility rules | Bridging a gap between the buyer’s capital and the asking price, where the seller is open to it | Buyers who don’t qualify for, or don’t want, an SBA-backed loan | Buyers, for example in a management buyout, who want a partner’s capital rather than more debt |
Swoop has been instrumental in achieving our desired Seed round funding objective which was oversubscribed, through an introduction of a Strategic Funding Partner –First Pacific Capital Pty Ltd. Throughout this process Tim has been strategic, collaborative and supportive working directly with AreaWealth and First Pacific Capital.
Area Wealth AdministrationServices Pty Ltd
I signed up on Swoop and within five minutes discovered I’d been overpaying on my FX transactions by $6k a year!
APAP
I always found going to banks intimidating and time-consuming but Swoop was easy to work with and fast. The matching technology was amazing and the team was knowledgeable and approachable. They’re definitely a long term partner for me now.
Sknhead
I found a number of funding sources that I’ve never come across. Swoop are like my internal fundraising team who did all the work. All I needed to do was to turn up in the meetings and phone calls they’ve arranged.
Nimble Babies
Swoop guided us through startup funding and our Seed round. Would highly recommend to any startup.
Co-founder & Director, Sons
Amazing service with a super professional team. Don’t waste your time by looking anywhere else but the Swoop platform. They helped in a seamless way and got the job done in 48 hours!
Bua Fit
Swoop was a good solution, because I was able to access cash that I badly needed, but more importantly, I was able to do it quickly.
Owner, F45 Maple
Disclaimer: Swoop Finance Pty Ltd (ABN 52 644 513 333) helps Australian firms access business finance, working directly with firms and their trusted advisors. We are a credit broker and do not provide finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance Pty Ltd can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness, we may receive a commission or finder’s fee for effecting such introductions. Swoop Finance Pty Ltd does not provide any kind of advice and in giving you information about providers products, we are not making any suggestion or recommendation to you about a particular product. Offers of finance are subject to a separate assessment process by the provider and subject to their terms and conditions. If you feel you have a complaint, please read our complaints section which is contained within our terms and conditions.
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