Deal Structure When Selling a Business
By Troy Frank, Owner, Indiana Equity Brokers Estimated read time: 6 min The short answer: Two offers at the same price can leave you with hundreds of thousands of dollars’ difference in real, after-tax cash. Deal structure decides what you keep, and it comes down to how much is cash at closing, how much is a seller note, and how much is rollover equity. Roughly 70 to 80 percent of small...Read More
Can a Landlord Kill Your Business Sale?
The short answer: Yes — a landlord can block or delay a business sale, even after a buyer and seller have agreed on price and terms. When a business is sold, the commercial lease typically must be assigned to the new owner, and most leases require landlord approval to do that. If your lease has unfavorable assignment language, a short remaining term, or a difficult landlord, it can stall your...Read More
Why Do Business Sales Fall Apart After Both Sides Agree?
The short answer: About half of all business sales that reach the due diligence phase never close. The most common reasons have nothing to do with price — they’re due diligence surprises, messy financials, customer concentration, disagreements over reps and warranties, and sellers who weren’t fully ready to sell. Most of these problems are fixable, but only if you find them before...Read More
How to Evaluate a Business Before You Buy It
The short answer: Evaluating a business before buying it means digging into five core areas: the financials, the seller’s motivation, operational risks, customer concentration, and whether the asking price is grounded in reality. Most Main Street businesses in Indiana sell for 2–3x seller’s discretionary earnings (SDE), and due diligence typically takes 30 to 90 days. A deal that...Read More
