Structuring a Deal

No two businesses are exactly alike, and no two deals are exactly alike. There are some common principles however. One is the relationship between price and terms. Put simply, the better the price is, the worse the terms will be. If the seller wants the maximum price for their business, they may have to offer seller financing at a discount rate, an earn out, a long training period, guarantees and warranties, and other such incentives. On the other hand, if the buyer wants the lowest price possible they should be prepared to offer all cash and a minimum of selling requirements. Very few transactions close that are one sided, so try to propose a deal structure that is win-win for both parties. Feel free to draw upon our experience in putting together hundreds of deals. We would be happy to help you create a transaction structure that will address the concerns of both buyer and seller and meet each parties' requirements.