A fabrication shop on Colfax just listed for sale, the owner retiring after 28 years.
Acquisition financing pays the seller, funds inventory transfers, covers initial payroll during ownership transition, and finances equipment included in the sale. The loan structure matches the asset mix: if you're buying a Golden restaurant with real estate, the term stretches longer than a Wheat Ridge service business with client contracts and goodwill only.
Answer: Acquisition loans fund the purchase price, assumed inventory, transition working capital, and seller financing gaps. Collateral typically includes the business assets being purchased, personal guarantees, and sometimes commercial real estate if the property transfers with the company.
Buyers along the West Colfax corridor often layer acquisition debt with seller carryback notes. That combination satisfies lender equity requirements without draining your reserve capital before day one of ownership.
Lenders evaluate your management experience, the target company's cash flow, industry stability, and your equity injection. A buyer with industry background purchasing a profitable Edgewater HVAC contractor will move faster than a first-time buyer chasing a turnaround.
Answer: Qualification hinges on the buyer's credit profile, industry experience, the target business's trailing twelve-month performance, and a 10 to 20 percent down payment. Lenders want proof the acquired company generates enough cash flow to service debt and pay you a salary.
We work with acquisition financing lenders who understand Lakewood's mix of legacy manufacturing, emerging tech service firms, and franchise opportunities near the Belmar district. Each deal type requires different documentation and speed-to-funding strategies.
How it works
Start the conversation before you sign a letter of intent. We'll review the seller's financials, structure the loan request, and match you to the right acquisition loan program. SBA 7(a) loans deliver lower rates for qualified buyers; bridge loans for business acquisition close faster when the seller won't extend due diligence.
Bring three years of business tax returns (seller's), your personal financial statement, a copy of the purchase agreement, and a transition plan. The faster we receive clean documents, the faster underwriting moves.
A Morrison couple found a 15-year-old landscaping company whose owner wanted to retire by spring. The business held contracts with six Lakewood metro districts and owned trucks outright. We structured an SBA 7(a) acquisition loan, closed in 47 days, and the new owners kept every crew member through the transition.
Explore more funding options on our Lakewood business loans page, compare SBA 7(a) loans for lower-rate acquisition deals, or review equipment financing if the seller is splitting asset sales. Visit our service areas page to confirm coverage in Sheridan, Englewood, Littleton, and surrounding communities.
Oakfield Advances 150 Sheridan Blvd, Denver, CO 80226, Lakewood, CO (720) 864-8914
Serving the Lakewood area
We know which lenders fund which kinds of Lakewood businesses, and we position your file where it fits.
One local broker, many lenders, and no cost to apply.
Common questions
Talk to a local advisor and get matched to the right program, no obligation.
