A buyer of an existing Johns Creek, GA practice, agency or salon can combine a cash down payment, a seller note and a business term loan to pay the price, then use working capital for the handover. Only the business side is in scope; real estate sold with it is outside this site. Meadowmoor Commercial Capital sends the request on to funding partners.
A purchase can be paid with buyer cash, a seller note and a term loan; the buyer gathers the seller's records before a partner reviews the deal; client books and salons each bring their own questions; working capital covers the handover. Real estate is outside this site, and the figures are invented.
How business acquisition lenders may see a deal: down payment, seller note and a term loan
A purchase price can be split three ways. The buyer puts in cash, the seller agrees to take part of the price later as a seller note, and a business term loan covers the rest at closing. The price pays for the business: equipment, client or patient relationships, stock and the name. A building sold with the business is a real estate purchase and outside this site.
Illustration only, invented figures: the price is $640,000. The buyer pays $64,000 in cash, the seller carries a $96,000 note at 7% for 60 months, and a term loan covers $480,000 at 10.25% for 120 months. The note costs $1,900.92 a month and the loan $6,409.87, so the buyer pays $8,310.79 a month for the first five years and $6,409.87 after the note is paid off. Over its term the loan totals $769,184.40, of which $289,184.40 is interest.
A funding partner may ask how the seller note is set up, including whether it is paid before or after the term loan.
Seller records a buyer gathers for a business acquisition loan in Johns Creek, GA
Before a partner reviews the deal, the buyer gathers the seller's records and reads them with an accountant. A list to work from:
- Tax returns for recent years and monthly profit and loss statements
- Revenue by client or patient group, to see how much rides on the largest accounts
- The staff roster with pay, roles and start dates
- The current lease, and a landlord letter agreeing to a transfer
- An equipment list with ages and any leases on it
- Accounts receivable aging and a list of debts and liens
The purchase agreement then sets what the price includes, what happens to receivables at closing and how long the seller stays on to introduce clients.
Points worth an accountant's second look: revenue that dips in the year before the sale, one client paying a large share of the fees, key staff who may leave with the seller, and a lease that ends soon after closing.
Business acquisition financing for a client book or an existing salon
Some purchases are mostly relationships. An accounting firm's book of clients or an insurance agency's book of policies is worth what keeps paying after the sale, so buyers and sellers sometimes tie part of the price to how many clients stay for a set period. Fulton County, GA had 714 employer establishments in accounting, tax preparation, bookkeeping and payroll services in 2023 (County Business Patterns); the accounting firm page covers a partner buy-in and the purchase of another firm's client list.
A salon purchase is a mix of equipment and people: styling chairs, dryers, product stock, the lease, and the stylists, whether employees or chair renters with their own clients. County Business Patterns counted 547 beauty salons as employer establishments in Fulton County, GA in 2023. For a practice, the dental practices page answers whether dental office loans can pay for buying a retiring dentist's practice.
Working capital through the handover of a Johns Creek, GA business
The weeks after closing bring costs the price did not cover: payroll that overlaps with the seller's transition period, letters and calls to clients, software and account changes, and supplies under the new owner's accounts. A working capital loan can carry them so the term loan payment does not compete with payroll.
Illustration only, invented figures: the buyer takes $45,000 of working capital at 12.5% a year and pays it off in 18 monthly installments of $2,754.66. They total $49,583.88, with $4,583.88 going to interest.
Another lever is the down payment itself. A buyer can hold part of the cash in reserve instead of putting every dollar into the price, but a smaller down payment means a larger term loan and a higher monthly payment, so the two choices trade off against each other.
More Johns Creek, GA articles cover dental buy-ins, nail salon co-owner buyouts and second child care locations.
By Meadowmoor Commercial Capital · Updated
