Business Acquisition Loan Request Story

A close family member of mine almost purchased a failing businesses. The individual was emotionally invested in each of the clients she served. She was the technical operator for a cosmetic laser clinic in CO. The doctors who originally opened and operated the clinic wanted out. The doctors offered to sell the business and it’s assets for the outstanding debt on the books. The problem was the business was not worth the outstanding debt.

A closer analysis showed the business had lost money each year it was in business. Even when sales were high, money was still lost at the bottom line. The management of the P&L operating expenses were never such that it became profitable. The doctors scaled back the practice in hopes that by spending less advertising dollars and other marketing campaigns they could keep more revenue at the bottom line.

In desperation these doctors wanted out. My family friend believed in the business and it’s concept; however, she did not know how to build a plan to make the business thrive. There were not strategic management skills from the executive level. Although she is a fantastic technician and customer service oriented individual, the vision to run a business was not present. The decision to buy was an emotion decision at best.

What can you learn from this experience as you approach your business acquisition loan request?

Related Posts

Comments are closed.

business loan clients