In a typical 90/10 partnership with Winthrop Capital Group, for a target business acquisition with $1,600,000 in revenue priced at $1,175,000, having $475,000 EBITDA and yielding $284,000 after debt service, the managing partner of Winthrop Capital would receive $255,600, while Winthrop Capital itself would receive $28,400 in fees from the partnership, in line with their profit-sharing arrangement.
2. Reduced Startup Risk:
In summary, buying a business can offer an ideal opportunity for those seeking to manage their own venture. By taking over an existing business, you can minimize the risks associated with startup, enjoy the benefits of established systems and customers, and shape the business to reflect your personal and professional goals. It’s a pathway to combining your passion with the freedom and control of running your own business.