Driftwater Loans, a small-business funding service in Fort Myers, Florida, explains how to finance a small business acquisition in Lee County: buyer equity, term loans and seller notes, the records partners read, and a worked example of debt coverage.
Equity, Loan and Seller Note: The Answer in Brief
Finance a small business acquisition by combining your own money, a term loan secured by the business's assets and, where the seller agrees, a seller note paid over time. Partners size the loan on the business's past earnings, not the asking price, so start with several years of the seller's tax returns and financial statements. Then test whether the earnings, after paying you a fair wage, cover every loan payment with room to spare. If they do not, renegotiate the price or the structure before asking for funding.
The term loan page covers how acquisition loans are structured.
How Many Lee County, FL Firms Could Change Hands
Lee County, FL had 22,756 employer establishments in 2023, and 62.5% had fewer than five employees (County Business Patterns 2023). Nonemployer Statistics, a separate program, counted 114,704 businesses without paid employees in 2024. Small employers make up the bulk of what changes hands, and their records vary: some have accountant-prepared statements, others only tax returns and bank statements, which affects how a partner can review them.
How to Finance a Small Business Acquisition? Answers for Fort Myers, FL Owners
| Layer | Who provides it | What a partner reads |
|---|---|---|
| Buyer's own money | The buyer | Source of the funds |
| Term loan | A lending partner | Seller's earnings, assets, buyer's experience |
| Seller note | The seller | Its terms and whether it is subordinated |
A larger buyer contribution or seller note lowers the loan and its payment. A seller who carries part of the price also stays invested in the handover.
Worked Example: Testing Debt Coverage
Illustration only, invented figures: a buyer agrees a price of $450,000 for a Lee County, FL service business. In this invented example, the buyer puts in $67,500, the seller carries $45,000 at 7% over 60 months, and a term loan covers $337,500 at 10% over 120 months. In this invented example, the loan payment is about $4,460 a month and the seller note about $891, together about $64,214 a year.
In this invented example the business earns $140,000 a year after paying the buyer a fair wage, so earnings cover the yearly payments about 2.18 times. A partner wants to see a cushion like that; a result close to 1.0 leaves no room for a slow year.
How to Buy a Business?
- Find the business and sign a letter of intent with the price and terms.
- Get the seller's tax returns, financial statements and bank statements.
- Check the lease, contracts, licenses and any liens.
- Work out the structure: your money, a loan and any seller note.
- Dial (239) 453-0635, or open the request page and add the quotes later.
- Close with the lease assigned, licenses transferred and working capital in place.
Can I Get a Loan to Buy a Business? A Fort Myers, FL Walk-Through
Yes, if the business's earnings support the payments and you can show the experience to run it. Partners read the seller's records, the price and how it was set, your résumé in the trade, your personal financial statement and the source of your contribution. A business with clean records and a buyer from the same trade gives a partner the clearest picture.
How to Buy a Business with a Loan? Answers for Fort Myers, FL Owners
Plan for more than the price. A new owner needs working capital for the first months, while customers and suppliers adjust; ask partners to include it, or line up working capital or a line of credit for after closing. Equipment that needs replacing soon belongs in the plan too.
Due Diligence Items a Partner Checks in Lee County, FL
- Tax returns that match the financial statements and bank deposits.
- Liens or advances still being collected against the business.
- The lease's remaining term and the landlord's consent to assign it.
- Licenses and the local business tax receipt, and how they transfer.
- Customer concentration: how much revenue depends on one client.
What Is Acquisition Financing? What It Means in Fort Myers, FL
Acquisition financing is any funding used to buy a business, as opposed to running or growing one. For a small business it can be structured as a term loan secured by the business's assets, sometimes combined with a seller note and the buyer's own money. Real estate bought with the business is a commercial mortgage, which Driftwater does not arrange.
What Is a Business Acquisition Loan? What It Means in Fort Myers, FL
It is a term loan whose purpose is the purchase price: a lump sum at closing, repaid in installments over years, secured by the business's assets and, where the partner asks for it, the buyer's personal guarantee. The other articles cover buying restaurants, motels, shops and practices, and county figures are on the Fort Myers, FL page.
By Driftwater Loans · Updated
