Understanding the fate of debt in a business sale is pivotal. While debt absorption can be a part of the sale in some cases, this isn’t the prevailing scenario. The destiny of debt hinges on the structuring of the transaction, typically falling into one of two categories: a stock sale or an asset sale. For […]
Breaking news: In the world of business transactions, there are moments when buyers and sellers find themselves at odds over a company’s value. Naturally, sellers aim for the highest possible price, while buyers may harbor concerns about the company’s potential for growth as promised, as well as its ability to retain customers and key personnel.
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When it comes to buying or selling a business, you’ll typically encounter two primary transaction structures: asset sales and stock sales. These two options may seem distinct, but in essence, they share more similarities than differences. In an asset sale, the entity (e.g., a corporation or LLC) sells off its individual assets, such as furniture,
Does the legal structure of my business entity (corporation, LLC, etc.) affect how the sale of my business is structured? Absolutely, the type of business entity you have plays a pivotal role in shaping the structure of the sale transaction. It’s a crucial factor that warrants careful consideration well in advance of initiating the sales
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I’m in discussions with a prospective buyer who has a keen interest in acquiring my business. Our discussions have revolved around his potential purchase of the manufacturing segment of my enterprise, while I intend to retain ownership of the wholesale division. Could you assist us in devising a well-structured deal and determining the appropriate asking
When a business changes hands, it’s customary for most buyers to request that the seller sign a non-competition agreement (commonly known as a non-compete) during the closing process. In fact, many buyers are hesitant to acquire a business without a firm commitment from the seller to refrain from competing in the same market after the
Location, location, location. This well-known mantra applies not only to home values but also holds significant weight in the world of businesses. Neglecting this critical aspect can jeopardize your sale. The lease agreement plays a pivotal role in the sale process and can be one of the two major stumbling blocks when selling your business,
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It’s truly remarkable how deals come together, considering the multitude of factors that must align and gain consensus between parties involved. One aspect often overlooked until the eleventh hour is the allocation of the purchase price. When selling a business, it’s imperative to allocate the purchase price, or the total sale value, across the different
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Introduction How do the majority of buyers secure funding for their business acquisitions? What’s the typical initial cash investment from buyers in a business purchase? Is seller financing a common practice? And if so, what are the usual terms? How prevalent are bank loans in business acquisitions? Are most bank loans categorized as Small Business
Introduction When it comes to selling your business, the question of cashing out at closing often arises. Many business owners prefer the simplicity of an all-cash transaction, but is it always achievable? In short, the answer is “Yes.” However, it’s important to understand that while it’s possible to sell your business for all cash, this
