Frequently asked questions about Buying a business
Global Petro Advisors is here to simplify your business acquisition journey. Buying a business can be complex, but our FAQs aim to guide you through the process, whether you’re new or experienced in investing.
How Do You Value a Business?
We consider various factors—financial history, assets, location, market, and more—along with recent comparable transactions to determine a fair selling price.
Should I Consider an SBA-Backed Loan for Financing?
Absolutely! SBA loans offer attractive terms, reasonable down payments, and fixed interest rates, providing financial flexibility for buyers.
Can You Recommend Legal and Financial Counsel?
Yes, we can connect you with the necessary legal and financial representation through our extensive network
Understanding Profit, Cash Flow, and Discretionary Earnings
Profit is what remains after expenses, while cash flow measures money flowing in and out of the business. Discretionary earnings encompass owner benefits and specific expenses not applicable to a new owner.
What Is Goodwill?
Goodwill represents the intangible value of a business beyond physical assets, including brand value, recurring revenue, and other intangible assets.
When Can I Access Financials and Tax Returns?
For confidentiality reasons, a summary is provided to qualified buyers initially. Detailed financial statements are shared during the due diligence phase after an offer is accepted.
Why Buy a Business Instead of just Starting One?
Purchasing an established business reduces the risks associated with starting from scratch. You gain a proven business model, existing customers, experienced staff, and immediate positive cash flow.
Global Petro Advisors is here to make the process clearer and more accessible for your successful business acquisition.
