Chapter 7 - Making Offers and Getting to Heads of Terms
At some point a Seller has been found and an initial contact made with a business that the Buyer is excited about. It is at this point we suggest that the Buyer contact us at Transworld M&A to assist with the rest of the process including structuring the actual deal and getting to Heads of Terms. It may have taken the Buyer months to get to this point and there are many ways that missteps could lead to a failure so getting the right help with save time, money and potential heartbreak.
Components of a Business Sale Transaction
Businesses are rarely sold for a single 'number' like a car or a house. It is a package of components that are unique to the business and the specific Buyer.
Generally, these include:
Closing payment - Cash paid by the Buyer to Seller at closing from their own funds or debt. Deferred payments - This is a type of debt that is paid to the Seller over time, usually 2-4 years. The key point here is that it operates like debt and a Buyer has to pay it subject to warranties of course. These are a feature in the majority of business sales as they allow the business Seller to realise a higher value and also give a Buyer the
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