Deal Structure 101

Boss Talk: Selling Businesses With Jim Parker and Carey Sobel | EP 20 | Deal Structure 101

Link to video podcast episode: https://youtu.be/NrRCfFWST6I 

Welcome back to another episode of Boss Talk: Selling Businesses With Jim Parker and Carey Sobel!

In this episode of Boss Talk, Jim Parker and Carey Sobel delve into the complexities of deal structure in business acquisitions. 💼🔍 They bust the myth that the purchase price is the only crucial factor, highlighting the importance of terms, buyer suitability, and negotiation points. The hosts break down asset sales vs. stock sales, discussing their pros and cons, tax implications, and scenarios where each is applicable. 📊 They also emphasize crucial negotiation elements such as seller financing, earn outs, rollover equity, and other non-price terms. If you're thinking about buying or selling a business, this episode is a must-watch for understanding the ins and outs of deal structure! 🚀

Business owners, if this content resonated with you, feel free to contact Boss Group International for any inquiries or to get started with a Broker’s Opinion of Value. We're here to serve you and ensure your business goals are met with excellence.

For more information on selling your business, visit https://www.bossgi.com 

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Catch up on past episodes here: https://www.youtube.com/playlist?list=PL6P2KZ69USp7uXhVKINeFL6IzcV9dr0fa  

00:00 Introduction to Deal Structure 101
01:22 Understanding Asset Sales vs. Stock Sales
02:41 Pros and Cons of Stock Sales
08:15 Pros and Cons of Asset Sales
09:52 Negotiation Points in Deal Structure
10:11 Non-Compete Agreements
14:03 Familiarization and Transition Periods
20:47 Asset Allocation and Tax Implications
23:04 Breaking Down the $5 Million Allocation
23:57 The Importance of Asset Allocation
26:47 Seller Financing Explained
29:13 The Risks of Seller Financing
33:50 Earnouts and Contingent Payments
38:27 Rollover Equity in Private Equity Deals
41:49 Key Negotiation Points in Deal Structuring
44:38 Conclusion and Final Thoughts

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