Family-specific structures like an intra-family loan from an established trust can also finance a transfer at belowmarket rates while keeping capital within the family ecosystem. SBA 7( a) loans enable a buyer to finance an acquisition with as little as 10 % down.
Understanding which combination of these tools fits your situation, and whether the business generates enough cash flow to support the structure you choose, is the kind of analysis that needs to happen years before a transaction, not during one.
Work With Manufacturing Succession Advisors Who Understand You
Succession planning for a family-owned manufacturer is one of the most complex financial and operational projects a business owner will undertake, and the stakes are uniquely high.
The business represents decades of work, a workforce that depends on continuity, and, in most cases, the primary vehicle for the owner’ s financial future.
At Rea, our manufacturing and distribution advisory team works with mid-market family businesses across Ohio and the Midwest to build succession plans that hold up under scrutiny, from initial valuation through ownership transfer and everything in between.
Whether you are ten years out or closer to the exit than you’ d planned, the right time to start is before you need to. Connect with Rea’ s Manufacturing and Distribution team to start building a succession plan that protects what you’ ve built.
Paul Weisinger, ABV, CEPA, CPA, CVA
Principal paul. weisinger @ reaadvisory. com
216- 573-9043
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