In today’s session, we’ll cover (arguably) the most important business buying topic:
How to structure your deal!
So, you want to buy a “business”? Exciting stuff!
But, what exactly does that mean? That is, what are you actually buying and why?
It may seem obvious, but maybe not.
Our goal in today’s session is to cover how to structure your deal. That is, how to determine what you’re going to buy, what you’re NOT going to buy, and why!
And to answer those questions, we have to talk about structure.
In this session, we’ll focus on the two most common business buying structures: asset and equity (stock) deals.
It’s possible, however, that you’ll need a more complicated structure, such as a merger, reverse triangular merger or similar. These structures are rare for SMB M&A transactions, so it’s beyond the scope of this course.
Additionally, almost all structuring decisions buyers and sellers make come down to one critical issue: taxes!
Thus, it’s critical to have a tax lawyer or other tax expert as a member of your deal team.
*Note that we’ll address basic tax considerations in this article, but we don’t purport to be tax experts and don’t intend this course to go deep on complicated tax issues. Please consult your own tax expert, as these issues can result in significant cost and expense for the unwary.*
Welcome to the sixth session of the free business buying masterclass.
Did you know that Kevin and Eric have launched a new podcast called Mundane Millionaires?
Each week, we publish and audio and video podcast of interviews with incredible entrepreneurs just like you who building time and financial wealth as entrepreneurs.
This week, we sat down with Kevin Bibelhausen, who recently acquired Heritage Fabrics after a multi-year search saga that included a heartbreaking failed deal in 2018, a near-death experience with Covid-19 that had Kevin receiving end of life care in 2021, and a successful acquisition in early 2023 despite his equity financing falling through the day he was signing his LOI.
You don’t want to miss this episode!