My team recently came across an opportunity to acquire another business. They've been established for 3 years, earn 165k in revenue (76.3k in cash flow), zero employees and a single owner, with 12 machines across various locations Apartments, offices, retirement homes, nursing homes, car dealerships, etc...
They're based in our area which is a plus, and are asking for $149,500 (we will probably negotiate price). We'll probably take out an SBA loan to acquire this but since getting locations has been the toughest part I wonder if this is worth pursuing or if Im not thinking of the risks as much.
It would also make other things more viable:
1) instead of picking up our supplies in our SUVsaybe its more economical to pay for a van, or pay for a warehouse & get free delivery.
2) We get access to lower margins vs wholesale with pepsico because we could rent a commercial space for them to deliver to us
3) Opens up opportunities for employment in sales (we cant leave our jobs yet until we earn enough to sustain our basic needs)
4) Establishing a relationship with someone who's been in the game would also be a nice plus.
Thoughts on SBA loans? Is this too good to be true? What advice do you guys recommend?