Commercial Opportunity - Buying a Business

[Leonard Nester]

I have a great opportunity to purchase and operate a turnkey business. Being a novice , does anyone have any insight as to how to proceed? Are there any lenders doing 100% loans ? 

Any information is welcome as the commercial end is very new to me.

[Bob Langworthy]

@Leonard Nester, the best option for you is owner financing for the deal. Depending on the industry, there may be a rule of thumb that applies to the value and purchase of a business. In the accounting industry, a practice is typically values at one year's gross income and paid out over 3-5 years adjusted for retention. 

If the current owner isn't interested in seller financing, I would wonder what he knows about the business/industry that you don't. If he's willing to take payments over several years and help you during that time, that's a good sign.

As an aside, have you owned or managed a business before? Is it an industry you are familiar with? Does the business have any profit after all employees (including you) are paid?

Hope this helps,