Introduction It is often common when selling your company to prorate any tax refunds that relate to the preclosing. Often the buyer of the company will agree to pay to the seller any such tax refunds that the target company…
Introduction It is often common when selling your company to prorate any tax refunds that relate to the preclosing. Often the buyer of the company will agree to pay to the seller any such tax refunds that the target company…
Introduction A buyer of a company often prices the target based upon some multiple of earnings. And a key assumption in its pricing model is often the stability of the target’s relationship with its key customers. So, a buyer will…
Introduction Buying a distressed business is risky. Even an asset buyer can get stuck with a distressed company’s liabilities under certain federal and state laws, such as the bankruptcy laws. The coal industry is a current poster child for distressed…
Introduction A buyer of a business often wants the seller’s owner to stay on after the closing. So, buyer and seller’s owner sign a separate employment agreement at the closing. This is in addition to the deal’s purchase agreement signed…
Introduction Buying certain personal service businesses presents challenges unlike buying a manufacturer of widgets. The value in a personal service business may depend upon the relationship the owner has with his sold company’s customers. Thus, the buyer risks buying a…
Introduction You started your company. As you grew you issued stock to key employees or issued stock to investors to raise capital. The company grew under your management. You are the CEO of the company, a board member, and as…
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