Is a Personal Guarantee Required to Buy a Business?

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  • Опубликовано: 18 ноя 2024

Комментарии • 10

  • @emmanoconer1750
    @emmanoconer1750 2 года назад

    Thanks for the info

  • @bennyortega5056
    @bennyortega5056 Год назад

    What's your opinion on buying a profitable affiliate marketing company. There are not assets since ecommerce, but consistent track record of increasing SDE, very profitable.

    • @BuyThenBuild
      @BuyThenBuild  Год назад

      Sounds a like a good little "cash machine." Of course, the devil is always in the details. Owning a business is the path to wealth and freedom, but if you don't operate it appropriately the downside is often terrible. Get after it and be careful!

    • @bennyortega5056
      @bennyortega5056 Год назад

      @@BuyThenBuild I want to say THANK YOU, your videos are just solid! There is no doubt you are very experienced, as well as an effective communicator. I am an executive looking to by a business much sooner than 6 months, so it does not seem like your course is the right one for me. I am in later stages, but the learning I am getting from your videos, confirming/vetting a lot of what I am experiencing... Priceless! THANK YOU! Very impressive

    • @BuyThenBuild
      @BuyThenBuild  Год назад +1

      @@bennyortega5056 Thank you so much, Benny. Praise keeps me doing it--thanks more than I can say.
      Also, I would absolutely consider the Lab. I think the Search Forum alone would be work multiples of the price of admission. I just say "6-24" months because that's the typical search period rom start to close. If you apply, have a strategy call with Chelsea, it's a true "strategy call" as we want to be sure we can exceed value to you and make sure you're a good fit. She'll also likely just help you--she's done over $3 Billion in purchases.

  • @MrMusicman325
    @MrMusicman325 2 года назад

    So in summary most businesses acquisitions under 5 mill require a personal Guarantee. I was wondering if you ever heard of anyone limiting the scope of a personal guarantee? For example 80% of the total amount due vs 100% in case your business fails

    • @BuyThenBuild
      @BuyThenBuild  2 года назад

      Hi Connor, In using the SBA, the SBA IS the collateral to the lender, typically 75-80% of the principal amount. However, your PG to the SBA will be the full amount. If you are doing an off market deal with a seller note, you may choose to negotiate this point.

  • @cenafanist
    @cenafanist 2 года назад

    How much collateral is needed?

    • @BuyThenBuild
      @BuyThenBuild  2 года назад

      Hi Ryan, if you do a traditional bank loan rather than an SBA loan, then you'll need enough collateral to more than cover the principal amount. If you use an SBA loan, the PG serves as the collateral as the SBA becomes the collateral to the lender.