EA030 – Debt’s Impact on the Selling Process with the Advisory Team
When a company needs to scale, it will almost always incur debt. This adds a layer of risk when purchasing a company, as you also have to consider inheriting that debt. While debt itself won’t make the transaction volatile, owners and advisors should assess whether it would be to their advantage to proceed. What are the questions you have to ask about debt? Can you decide to pass on debt?
Today, we describe our thoughts on buying companies in debt and the factors owners and their advisory teams need to consider before proceeding with the transaction. We explain why being in debt isn’t necessarily a problem. We share some ways to mitigate the risks associated with buying a business in debt. We also discuss commonly overlooked details in business valuations and why advisors can’t just make assumptions.
“Debt isn’t always a bad thing, so don’t be scared of it. Just know how to deal with it.” – Jean-Luc Johnstone
This week on the Expensive Advice Podcast:
Resources Mentioned:
Connect with Matt Smith and Jean-Luc Johnstone:
Turning Boring Money into FUN Money
Thanks for tuning into this week’s episode of Expensive Advice. If you enjoyed this episode, please subscribe and leave a review wherever you get your podcasts.
Apple Podcasts | GooglePlay | Stitcher | Spotify | Amazon Music | iHeart | Android | Podchaser
Be sure to share your favorite episodes on social media to help us reach more listeners, like you.
Join us on Facebook and LinkedIn. For more exclusive content and information, visit our website.
Popular Podcasts
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.