The current owner finances the sale by allowing the buyer to pay the purchase price in installments over time. These payments are typically funded directly by the business's ongoing profits.

A financial transaction where a buyer uses a high ratio of borrowed funds (60-90% debt) to acquire a company. The loans are secured by the target company's assets and repaid using its generated cash flow.

Financing is secured against specific operating assets of the target business, such as accounts receivable, inventory, or equipment. Key Execution Steps The SMART way to buy a business (using its own cash)

Buying a business using its own cash flow is a strategy where the are used to pay for the purchase price. This approach typically involves minimal upfront personal capital from the buyer, shifting the financial burden onto the target company's balance sheet. Core Strategies for Self-Financed Acquisitions