Getting from Point A to Point B

Business acquisition is one of the most frequently cited reasons for entrepreneurs to seek Small Business Administration (SBA) 7(a) loans. And for good reason: it is becoming increasingly apparent that significant acquisition opportunities will arise over the next decade as Baby Boomer owners retire. The key to successfully buying an existing business? Start with the right lender.

Point B Communications is a full-service advertising agency that specializes in brand creation and strategic marketing initiatives. Its new owner, Joe Soelberg, recently acquired the business with a 7(a) loan. Here are his thoughts on the process:

“I chose to work with First Internet Bank because they had a willingness to recognize the importance of the cash flow and history of Point B when making the loan. They were also able to get comfortable with the advertising industry and the high level of goodwill, strong relationships and reputation that provide value to the business.”

Making his choice even better in retrospect, he enjoyed his interaction with the First Internet Bank SBA team.

“I appreciated the straightforward approach and transparency of my Business Development Officer (BDO). He helped from the very beginning during the pre-qualification analysis stage all the way through closing.

There were a few stressful moments – as there are in any loan process – but ultimately, the most important thing is whether the deal is able to progress through its various stages and get to the finish line within the predicted timeline, which we did.”

From application to closing, the loan process is a journey. It pays to have a responsive lending partner, as Joe notes:

“I greatly appreciated the availability. My BDO always answered my phone calls, coordinated meetings with various team members as needed and helped push all stakeholders to make progress toward the close,”

He added, “I might have found another lender that could work with me, certainly, but it could have taken more time and required a larger capital raise or additional collateral. Again, the First Internet Bank SBA team recognized the value of strong cash flow, and that was very important in getting this deal done.”

Finally, given his personal experience, would Joe recommend First Internet Bank for SBA lending?

“I certainly would. In fact, I have told friends and colleagues who are looking for acquisition opportunities that I would be happy to introduce them to a good bank that can help them get their acquisition done when they are ready. The loan, quite frankly, allowed me to acquire Point B. Without it, I would not own the business today.”

Both aspiring entrepreneurs and experienced acquisition pros can position themselves for future success through purchasing an existing firm with an SBA 7(a) loan. Ready to make your move? First Internet Bank can help get you started.