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Small Business Investing

Investing in a Small Business

What will the former owner of the company typically do with the cash received from the transaction?

Businesses may use the capital generated from a sale of equity, if the sellers so intend, to finance necessary capital expenditures to expand, pay down debt and/or other obligations, buy out equity of other owners or partners, increase the seller’s cash position or liquidity, hire new employees, or invest to expand the company.



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