Knowledge Base

The most comprehensive, easy-to-understand source of information for selling a small to mid-sized business.

Financial Deal Structure

Net Working Capital (NWC) for M&A – A Complete Guide

If your business requires a significant amount of working capital to operate, then you must understand net working capital before you sell. NWC may constitute a significant percent of the purchase price, and any mistakes you make in the calculation or when negotiating terms will have a material impact on your net proceeds.

Can I Sell My Business for All Cash?

When selling my business, can I cash out at closing? Is it possible to sell my business for all cash? Or do I need to finance a portion of the purchase price?

M&A Seller Financing: A Complete Guide

One of the simplest ways to finance the acquisition of a business is to work with the seller to negotiate some form of seller financing, which is called a “seller note.”

Retirement Funds Financing When Buying or Selling a Business

A buyer can invest in a business or franchise through this process by utilizing existing retirement funds without taking a taxable distribution or getting a loan. This arrangement allows an individual to invest up to 100% of their eligible assets to finance their venture debt-free.

SBA Financing When Buying or Selling a Business

Buying a business requires more than having in hand a sound business plan; it requires financing. Many buyers attempt to secure financing on their own, but the reality is that 84% of those loans are denied.

Small Business Acquisition Financing

In the following article, we examine each source of financing in more detail, including the advantages and disadvantages of each and how different forms of financing can be combined into some common transaction structures.

What Happens to Debt When Selling a Business?

It is essential to understand what happens to debt when a business is sold. In some instances, the debt is absorbed in the transaction as part of the sale. However, this is not the case most of the time.

M&A Seller Financing: Handling a Buyer Default

Sometimes buyers start out with the best of intentions yet end up realizing they have overestimated their capabilities to pay. Needless to say, dealing with buyers who have defaulted on a seller note can be disappointing.