What’s the number one thing stopping you from buying a business?
Usually, it’s financing. Either you lack the cash in the bank or your bank won’t (or can’t) lend it to you. But did you know banks aren’t the only way to finance an acquisition?
(And no, I’m not talking about diluting your equity with investors.)
Chicago-based entrepreneur, Griffin Caprio, wanted to Acquire FeedGeni on Acquire.com. The ecommerce business would add new software integrations to his growing portfolio and 3,000 retail locations to expand his market.
But Griffin couldn’t raise enough money to buy the business.
In the past, he’d relied on savings and small investments from friends and family to fund acquisitions. But FeedGeni was to be his biggest acquisition yet, needing more capital than his network could provide.
He turned to the SBA and they said no, it wasn’t the right opportunity for them. So he visited a business bank, which also said no because FeedGeni was a foreign entity.
Then Griffin discovered Acquire.com had a relationship with revenue-based financing provider, Boopos. If he applied for its fast, flexible financing, could he rescue his acquisition of FeedGeni before another buyer beat him to it?
Why Finance an Acquisition With Boopos
You usually seek financing when you lack the capital to realize your ambitions. Maybe you’re acquiring a larger company than usual, like Griffin, or your money is tied up elsewhere. That FeedGeni was an international business only compounded Griffin’s problems since no one appeared willing to take on the additional risk.
With funds trapped behind the goblin gatekeepers of traditional finance, Griffin was stumped. He builds and Acquires applications in niche ecommerce industries, and with so many of these companies abroad, it wouldn’t be the last time he needed to buy a foreign business.
“I build and Acquire vertically-specific or category-specific ecommerce SaaS applications,” he said. “Usually these businesses solve a bits-meets-atoms problem, and many of them are overseas.”
Griffin discovered Acquire.com soon after it launched and was drawn to its global community and thousands of SaaS listings. Elsewhere, the opportunities were few. Acquire.com was the first marketplace to sketch out a path to bigger and more strategic acquisitions.
“I did my first acquisition on Acquire.com around eighteen months ago,” Griffin said. “It was small, just big enough to get my feet wet. Acquire was the first marketplace I found with a real SaaS focus. Others sold mainly content sites or FBA brands.”
Griffin’s next acquisition, FeedGeni, would help him consolidate and expand his presence in the aftermarket auto parts niche. “The acquisition brings me 3,000 new stores that I’m going to mine for opportunities on the horizontal side,” he said.
But when the SBA declined his application and a banking partner said no, Griffin wasn’t sure if he’d be able to proceed with the acquisition. If he were to rely exclusively on his own capital, he might have had to stall his ambitious growth plans for years, losing the FeedGeni opportunity.
Thankfully, he discovered Boopos through Acquire.com. Not only did the platform offer acquisition financing without his personal guarantee, but it could also lend in as little as 48 hours and offered flexible repayment plans. Was this the answer to Griffin’s predicament?
How to Finance an Acquisition With Boopos
Remember the last time you applied for credit? It can feel a bit mechanical – judgmental, even. Griffin browsed Boopos’ website wondering whether the company could fulfill its promises or if this would be yet another automated application that would end in rejection.
Soon after starting the application process online, the Boopos team contacted Griffin to discuss how the financing process works. Boopos would finance the acquisition in return for a percentage of future revenues, with flexible repayments from one to five years.
So far, so good, but Boopos also required a 24-month P&L (profit and loss) statement. FeedGeni could supply 18 months only, and Griffin worried that six-month gap would scupper his chances. Tentatively, he got in touch with the Boopos team, expecting the worst.
To his surprise, however, the Boopos team helped Griffin overcome the P&L issue and other minor obstacles. When he didn’t understand a question in the application, he spoke to real people who took the time to evaluate his case properly rather than issue an automatic rejection.
“I was glad it wasn’t an automated experience,” Griffin said. “Acquisitions are rarely straightforward so talking to the Boopos team about the nuances of the deal was super helpful and helped me get it over the finish line.
“Some founders want that one-click decision, but it’s really about closing the deal. If it wasn’t for Boopos and Acquire.com, I think FeedGeni would’ve been Acquired by someone else, and I’d still be looking for that consolidation and growth opportunity.”
Griffin’s story ended happily, and he’s now exploiting all the growth opportunities FeedGeni has to offer. If you need capital to buy a business, non-dilutive financing is available to you within Acquire.com. Sign up for your buyer account here, and then look for the “Finance with Boopos” tag on qualifying startups in the marketplace. Then follow these instructions:
1. Click the Finance with Boopos link on the startup you want to Acquire (see below).
2. Complete the application form on Boopos’ website (see below).
3. Refer to Boopos support if you need help.
4. Get your financing.
5. Acquire the startup!
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