Guest Podcast: Revenue-Based Lending to Buy an Online Business with Acquisition Lab

Learn the basics for alternative acquisition financing for e-commerce and SaaS with the Acquisition Lab and Boopos

July 4, 2022
Guest Posts

While the SBA or traditional bank financing is a common strategy for many Acquisition Entrepreneurs, it's not always the best for every deal. There are other non-traditional options such as revenue-based lending that can be more convenient for those who want to buy an online business. 

Acquisition Lab, an advisory service that provides education and coaching for acquisition entrepreneurs as they become business owners, invited Boopos as a guest speaker to share the different business acquisition loans that are available for buyers looking to buy e-commerce or SaaS businesses. Watch the episode here

SBA acquisition loans are not always an option for those who want to acquire an Amazon FBA store, e-commerce or SaaS business. Not all online businesses are eligible and the 3-month average funding is less competitive in a fast-paced M&A environment. This is why many buyers look into Revenue-Based Lending to finance the acquisition of an online business. These are the top 5 getaways from the episode: 

5 Key Getaways of Revenue-Based Lending for Acquisitions:

  • Revenue-based financing is synonymous with no personal guarantees. Entrepreneurs can buy an e-commerce or FBA business without having to risk any personal assets as collateral.
  • It is a non-dilutive form of financing, so entrepreneurs and their partners get to keep the full ownership of the business.
  • The funding process is very fast to make sure buyers never miss a deal. They can receive a term sheet in just 48 hours and get funded in less than 7 days
  • There are no fixed installments. The loan is paid back through a % of revenues, so it holds a flexible payback scheme that adapts to the profitability of the business with pre-payment incentive instead of penalties. 
  • It is a financing option useful for both individual acquisition entrepreneurs looking to buy a small business, aggregators that want to gain traction faster before raising debt and brokers that are eager to accelerate their sales. 

Want to learn more?

Check out this episode with Chelsea Wood (Buy Then Build Acquisition Lab) and Andrea Balletbó (Boopos)

Chelsea Wood 

 

Chelsea manages Lab operations and is the day-to-day contact for all things Acquisition Lab. She is also a Certified Mergers & Acquisitions Advisor as well as an Industrial/Organizational Psychologist focused on maximizing organizational success through human capital. For nearly 15 years, Chelsea has partnered with leadership to identify and address their business challenges around operational performance, strategy, business development and human capital.

Aside from consulting, she also managed new growth initiatives for a multi-state integrated health-delivery system that grew the business from $3.1B to $6.1B through mergers, acquisitions, and other strategic partnerships. She holds a Green Belt, Six Sigma Certification and a bachelor’s degree in Psychology from Southern Illinois University and a master’s degree in Industrial/Organizational Psychology from The Chicago School. She resides in St. Louis, Missouri with her husband, two sons, and two dogs.

Acquisition Lab Overview

Their service is designed to help buyers accelerate their search by pairing graduate-level instruction with “do-it-with-you” buy-side advisory service.

By joining, Acquisition Lab members will master the concepts needed to search for, identify, and ultimately acquire the right business for them.

To support their journey, the Acquisition Lab provides both online and live learning, exposure to real-world examples and scenarios, and access to a community of acquisition entrepreneurs and M&A professionals.  Their proven process is designed to help you run your search in an organized structure and evaluate deals quickly and effectively.