Business Brokers Macomb County Michigan | Oakland County MI Business Brokers
        • INIX Consulting & Brokerage is a full-service Lower Market M&A advisory, Business Brokerage and Valuation firm committed to providing our clients with highest quality service. With local market expertise and national exposure, we are the right choice for your business exit needs.

The deal is getting down to the wire, the price differential is close, but the parties are not yet in agreement. Following are some ideas that might get the ball rolling and help bring the parties together.

  • Let the seller retain the real estate and rent it to the buyer, thus reducing the price. The same could be done for major pieces of equipment. Let the seller lease them to the buyer reducing the price. The lease should, however, like most leases, provide for a buyout at the end.
  • Structure a royalty on sales rather than an earnout on gross margins or EBIT.
  • Have the parties create a subsidiary for the fastest growing part of the business in which the buyer and seller share 50/50.
  • Let the buyers acquire 70 percent of the business with the requirement that they purchase 10 percent more each year on the same multiple of EBIT as in the 70 percent sale.
  • Arrange a consulting agreement with the seller to provide additional compensation to be paid annually.

Certainly, any agreement or deal structure should be approved by the party’s professional advisors.

Share:

More Posts

How to Save a Deal

Few business owners truly understand the complex dynamics of making a deal. Having never participated in selling a business before, the majority of business owners

How Business Owners Can Leverage AI

Artificial Intelligence has certainly received more than a bit of attention in the last two years. It’s no wonder that many business owners wonder how

Archives
Categories