Capital Business Solutions
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Floorplan lending is a version of financing in which each loan is secured by specific collateral. For American automobile dealerships, that means a financial institution forwards capital which the dealer uses to buy inventory, and said loan is secured by the autos on the lot, to be repaid as the cars are sold.
According to a recent article by Harry Stoffer in Automotive News, "Dealer associations across the country are hearing complaints from members that their business are threatened by lack of access to floorplan loans and by financing terms they consider unreasonable."
We Offer SBA Floorplan Lending!
Read an article from Automotive News on how this directly benefits you.
Under the auspices of Capital Business Solutions, a full-service business brokerage firm with affiliates worldwide, the Floorplan mediation team of auto dealership veterans, lawyers, and accountants offers a vital service to dealers struggling to maintain their livelihood in today's difficult economy.
"Without a floorplan agreement, a dealer can't operate. Franchise contracts require one. But with capital scarce and the average dealer's finances under severe pressure, floorplan lenders are cracking down... the floorplan freeze is claiming victims nationwide."
~ Michael Oneal, Chicagotribune.com, Sunday March 29, 2009
Enter the Floorplan team.
Mediators such as Chad Gustchow, a former auto dealer who experienced the freeze firsthand, assists troubled dealerships in negotiating with their lenders in order to survive the recession with their current livelihoods intact.
The Floorplan team works with independent car dealerships and franchisees to renegotiate the terms of their inventory loans with financial institutions and to help sort out the complexities of state-by-state franchise regulations which affect their individual financing.
Gustchow states that "the majority of my business is helping dealers with current lenders - 90 percent are having problems" with their current floorplan financing.
Some of the ways in which the floorplan specialists help auto dealerships in crisis include advice on cutting overhead costs such as advertising and office expenses. They encourage a shift in focus from new car sales to used car sales. And they facilitate close communication with lenders. Sometimes dealers are too close to the crisis to clearly see what needs to be done. Gutschow and the Floorplan team have the advantage of objectivity. They work closely with dealers in the long term to see them through the crisis.
The Floorplan team has stepped in to fill a need created by the banking crisis, the national downturn in sales, and the ailing auto industry. With dealership experience, legal knowledge, and professional accounting advice, the Floorplan Lending group stands ready to help auto dealers, large or small, work with financial institutions in order to survive the economic crisis.
Call 402-721-1027 for the help your dealership needs today.
In the Mergers & Acquisitions arena, we focus on companies with revenues ranging from $5 million to $200 million with earnings of $500,000 and above.
Mergers & Acquisition investors generally fall into one of three categories:
- Corporate Buyers
- Private Equity Firms
- High Net Worth Individuals
All three groups of investors have raised or possess the necessary funds for the sole purpose of investing in privately held businesses such as yours. Their resources also allow them access to high power borrowing options, often unavailable to the general public. These options afford them the opportunity to acquire "platform" companies that fit their investment strategies. These companies can either be add-on acquisitions for their portfolio or independent companies that compliment their long term investment goals.
Each acquisition is uniquely structured to fulfill the requirements of the individual participants. An investor may choose to purchase 100% of the company's assets or stock, a leverage buy-out, or in many cases, allow the seller to keep a percentage of the stock and remain in a top management position for an agreed upon timeframe. This last scenario allows for a pre-determined seller exit strategy, enables the seller to receive a large up front percentage of cash from the sale of the business while taking advantage of the future growth potential the new investor provides, and ensures both a smooth and profitable transition!
Multitudes of motivating factors are evaluated when an investor contemplates an acquisition. In addition to reviewing an acquisition's historical portrait, future earnings potential, opportunity to capture greater market share, synergy this new acquisition may provide to entities already under its corporate umbrella and ability to provide a healthy return on investment are a smattering of the many factors considered in a detailed business analysis.
Return On Investment (ROI) may be judged by different extenuating factors i.e.:
- Cost of funds to purchase the business
- Degree of risk involved in the transaction
- Need the acquisition will fill
- Future expectations of profit
- How a particular business measures up to other companies in its industry
What Capital Business Solutions Can Do For You
Capital Business Solutions maintains a database of over 5,100 national and international equity groups. This population is complimented by the many corporate buyers who maintain constant contact with our M & A Division.
Capital's team provides over forty years of training and experience necessary to prepare your business for acquisition and a seamless sales transaction. Capital's senior staff of M&A professionals are well schooled in the art of confidentiality, preparing offering memorandums, and all of the transactions, necessary processes, and protocols to complete the transaction.
Allow our strategic alliance of professionals, which include CPAs, tax experts, transaction attorneys, and financial planners, to assist in every aspect of the transaction. This includes, but is not limited to, structuring your business to command the highest market resale, creating offering memorandums sought by acquisition experts, and top financial planners structuring the sale to incur the least amount of tax liability possible!
Capital Business Solutions is a full service business brokerage firm connecting sellers of businesses with qualified, capable buyers and acquisition specialists around the world. We are a general business brokerage firm specializing in selling profitable companies from your local pizza parlor, dry cleaner and convenience store to large single and multi-location firms in all sectors including the manufacturing, distribution and service industries. CBS is also focused on providing world class continuous education and ongoing support services to our global network of professional business intermediaries.
Our vision is to make your aspirations a reality, whether you are looking for a new start as a seller, buyer or business intermediary.