Why Down Payment and Debt Service Are Key to Your Business Purchase

down payment on business purchase

In the third part of “Paying the Right Price,” we looked closely at how to use the SDE and value multipliers together to calculate business value. This was an important step for a business buyer to ensure an accurate purchase price.

The final part of this four-part video is going to cover two related topics that often catch first-time business buyers off guard and lead to many an abandoned business deal:

  • the size of the down payment, and
  • debt service coverage ratio.

Guide to buying a business

Your Path to Personal and Financial Freedom

Buying a business can be tricky. We’ve simplified the process into 7 steps. This book is your go-to resource to learn why buying a business is your path to success and financial freedom.

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Let Us Help You Buy a Business!

Here at Alexander Abramson, we focus exclusively on business-related legal matters. Our attorneys have advised business owners and entrepreneurs on business purchase and sale transactions for decades. 

Ed Alexander is also a Florida licensed business broker and co-owner of FitzGibbon Alexander, Inc., a Central Florida consulting, business valuation, and business brokerage firm.

We would love to speak with you directly about how we can help you in the business buying process. Call us at 407-649-7777 or email a team member to get started.

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