The Rise of Interest Rates: Implications and Strategies

The Deal Board

Andy and Jessica welcome you to another episode of The Deal Board Podcast. This week they talk about the implications of buying a business in today’s interest rate environment. They also provide several strategies for looking for partners and negotiating terms under a different business dynamic.

Listing of the week: Tom Milana (Fort Lauderdale) is selling a Sailing boat company located in Saint Thomas, U.S. Virgin Islands. The company is operated by a husband and wife who have operated the company for 20 years. The price is $299,000, including one yacht and another vessel. The business is making $50,000 to $60,0000 in profit every year. Change your lifestyle! Contact Tom at [e-mail] or call [phone].

Key takeaways:

[1:51] Implication No 1: Getting and carrying a loan is more expensive.

[2:20] Implication No 2: Qualifying for a loan can be more difficult.

[3:10] Implication No 3: The terms can be shorter.

[3:26] Implication No 4: It affects seller financing too.

[5:23] People are getting used to these new interest rates.

[5:42] Jessica introduces the 1st strategy: Compare your different financing options.

[6:50] 2nd Strategy: Consider a variable amount rate loan.

[7:22] 3rd Strategy: It is sometimes possible to negotiate interest rates and payments.

[9:11] 4th Strategy: Use your retirement savings to purchase a business.

[10:50] 5th Strategy: Visit SBA.gov.

[12:35] 6th Strategy: Utilize loan brokers.

[13:48] 7th Strategy: Seek a business broker.

[15:04] Interest rates are where they should be.

[20:17] Deal of the week: Joe Di Bartolo (West Florida) sold a pool construction company, which has been in business for 25 years, with 90 employees, and is located in Tampa, Florida. The price was $20.75 million. The owners were ready to retire.

[22:24] John Wahl (Live Oak Bank) speaks of what is happening in the banking industry.

[25:47] John discusses what will happen in the next few months.

[30:22] Is it still an acquisition loan good to buy a business?

[34:58] What can sellers do in this environment to be more prepared for a transaction?

[37:55] What can buyers do to best prepare themselves for a deal in today’s economic environment?

[42:18] Listing of the week: Tom Milana (Fort Lauderdale) is selling a Sailing boat company located in Saint Thomas, U.S. Virgin Islands. The company is operated by a husband and wife who have operated the company for 20 years. The price is $299,000, including one yacht and another vessel. The business is making $50,000 to $60,0000 in profit every year.

Mentioned in this Episode:

The Deal Board Podcast

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United Franchise Group

Transworld Business Advisors

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Call us — [phone]

Email us [e-mail]

Call Joe Di Bartolo at [phone].

Call John Wahl at [phone] or email him at [e-mail].

Contact Tom Milana at [e-mail] or call [phone].

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