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The most obvious sources of capital that a buyer can use to buy a business is his or her own money. One of the main benefits of this is that the buyer has complete control over the situation. When a third-party lender is used, there are many hurdles that are implemented on the buyer. However, using their own money removes those external limitations.
The downside to investing your own money is the fact that there will be a point where you will not have the funds to continue supporting your business. Putting your money in to something like an acquisition your company’s capital, so the money cannot go towards other expenses like payroll and operations.
Investing 100 percent of your own personal finances to buy a business also means that you are investing 100 percent of the responsibility associated with the risk. Therefore bringing in professional financial assistance may help the buyer with their deal.