Preparing to Buy a Business
We help you identify profitable businesses with efficient systems and capable personnel that will operate without your daily intervention. Our team looks for businesses with strong financials, real estate, long-term contracts, loyal customers and a strong brand. We want at least three years of "clean" tax returns and P&L statements that tell a clear, upward-trending story of growth and stability. We visit the business personally and look for the real story behind the financial reports. Your long-term financial success is our number one goal.
Considerations When Buying
When we assess a business for you to buy, we look at the financials, but we also look at Owner Dependence. If the business cannot function for 30 days without the owner's direct involvement, it is a high-risk asset.
We investigate if the owner has a 2nd-in-command or a leadership team. We assess if they document their processes. We want you to purchase a sustainable "money-making machine," not a 60-hour-a-week job.
If you are looking for a "fixer-upper," we can help you buy at a discounted price and then implement the changes, processes and technology to maximize performance and profitability.
Deal Structure
Deal Structure is often more important than the "Sticker Price." A $2M offer that is all cash is often better than a $2.5M offer with heavy earn-outs or seller notes that carry high risk. You must be clear on your post-sale goals. Do you want a clean purchase with no future input from the seller? Or do you want the seller to stay on as a consultant to ensure the business hits performance targets?
How Our 20 Years of Consulting Benefits You
When buying, your primary focus should be on the "Why." You must dig deep into why the seller is leaving—is it truly retirement, or is there an impending regulatory change or a new competitor entering the market? Due diligence isn't just about the numbers; it’s about understanding the competitive landscape and ensuring the "moat" around the business is still intact and defensible.
Pay close attention to Customer Concentration. A business that makes $1M in profit but gets 50% of its revenue from one government contract is significantly more fragile than a business making $750k from 1,000 small customers. At WHC Lending, we help you analyze the "quality" of the revenue to ensure that the cash flow you are buying today will still be there five years from now.
We also assess the morale of the team and the likelihood of key employees staying post-acquisition. We recommend looking for businesses where the staff is incentivized by performance and the technology supports maximum production. Where needed, after you buy the company, we can help you add immediate value through the use of AI and other operational efficiency strategies we implement at WHC.
The WHC Team
To ensure every transaction is bulletproof, WHC Lending utilizes a "Core Deal Team" consisting of an M&A Attorney, a specialized CPA, and a Valuation Analyst. The M&A Attorney is responsible for drafting the air-tight purchase agreements and managing legal risk, while the CPA focuses on tax-efficient deal structuring so our clients keep more of their money. The Valuation Analyst ensures we never overpay for an asset or leave money on the table.
On the operational side, we employ Industry Specialists and Due Diligence Managers. These members do the "boots on the ground" work of inspecting facilities, interviewing key staff (when appropriate), and auditing the technology stack. By having specialists who understand specific sectors (like Healthcare or IT), we can spot red flags that a generalist might miss, ensuring the transition is as smooth as possible.
Finally, our Lending Coordinators and Post-Acquisition Integration Leads bridge the gap between the sale and the future. The Lending Coordinator manages the mountains of paperwork required for SBA or private funding, while the Integration Lead stays with the buyer for the first 90 days. This ensures that the consulting strategies of WHC are applied immediately, helping the new owner find quick wins and solidify their ROI.
Testimonials
WHC hosts events for business owners to network and discuss deals. At a recent event, Founder Will Holmes asked three clients about their experience with WHC. Turn on the volume, hear about their experiences, and schedule a consultation.
Apply for Funding
Maryland remains a top state for SBA lending. Since most deals under $5M are funded via SBA, our dual role as a lender and advisor allows us to offer quick approvals and competitive interest rates. Plus, our network of private equity and top lenders help us fund your deal quickly.
Access our Business Directory
WHC has assisted in the growth of thousands of businesses in Maryland, preparing them to scale and maximize revenue. These trusted relationships allow for off-market opportunities and safer deals.
FAQs
Your Questions Answered: Quick Insights on Financing with WHC
What sets WHC Lending apart from other lenders?
WHC Lending offers personalized, tailored financial solutions with dedicated customer service.
What are the eligibility requirements for obtaining a loan with WHC Lending?
Eligibility depends on factors like credit history and financial stability. Contact a loan officer for specific details.
How long does the loan approval process take at WHC Lending?
Typically, approvals take a few days to a couple of weeks, depending on loan complexity.
Can I pay off my loan early with WHC Lending?
Yes, you can pay off your loan early without any prepayment penalties.
What types of interest rates does WHC Lending offer?
We offer both fixed and variable interest rate loans based on market conditions and your financial profile.
How can I apply for a loan with WHC Lending?
Visit our website to fill out an online application or contact us by phone for direct assistance.