» Choose carefully your financier.
It is very common for a number financial sources to be put together to facilitate the transaction. For your own contribution, don’t deplete your resources beyond reasonable. Leave yourself with a nest egg and a sum of money you might tap for the unforeseen. The current owner is usually a wise selection for financing. Having their vested interest in the future performance ensures they properly turn the business over to you and meet commitments to help. They are often a less expensive financing means. Professional lenders such as banks and venture capitalists are additional sources for financing with venture capitalists wanting more interest, faster return, and more input to the company operation. While they may seem too controlling, wisely selected, they can bring a big asset to achieving success.