Commercial Mortgages and Loans- how much?

(2 Posts)
judybloomno5 Wed 02-Nov-16 20:19:31

My DH and I are hypothetically looking to buy a business. Its in an industry that DH is currently a freelancer in and has been for the past 10 years. He is currently working as a Ltd company which consistently turns over £150k over the past 3 years. Its an industry with relatively high barriers to entry (you have to train 5 years to do it) and is healthcare related. Need any more clues lol....

Im told by my financial advisor that lenders 'like' to lend to people in my DH's profession as they can and do have relatively high profits and are stable in financial downturns. DH is a practitioner and at the moment works for another business which takes a percentage of his earnings.

In your experience of buying businesses- how much money did you need to do so for mortgages and legal fees etc? The businesses that we are looking for have turnovers of about £350k and cost similar to buy when its leasehold.

lovelyupnorth Tue 08-Nov-16 14:29:27

assets and profits is more important than turnover.

a good starting point is 3 x net profit as a value guide, but worth speaking to an account and getting a proper valuation.

as far as funding the purchase there are loads of options a lot will depend on the security available.

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