Please Clarify the Basic Elements of a Deal Structure when Selling a Restoration Business?


Q: Please clarify the basic elements of a deal structure when selling a restoration business?  

JT says: Based on seller’s preferences, requirements, transaction size, financial trends and perceived risk (by buyer), deal structures may contain some/all of the following:  

Cash:  Funds received at the closing table.  

Fixed Notes:  Referred to as a Seller Carry-Back Note (SCBN), these are guaranteed fixed payments (including interest) over a certain number of months/years.  

Earnouts:  Agreements allowing the Seller to receive additional payments if the business achieves certain financial goals in the near future.   

Holdbacks:  A portion of the purchase price not paid at the closing table, but ‘held’ (short-term) in escrow to ensure there are no skeletons in the closet so to speak. 

Roll-Over Equity:  A portion of the Seller’s ownership stake getting ‘rolled over’ or invested into the acquiring company. (Can be very profitable investments.)  

Every deal is unique, yours will be as well.  If additional clarifications are needed for your specific situation, please reach out at any time. 

Get Answers + Get Prepared = Get Retired

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JT Kraai

As CEO and Founder of Exit Strategies 360, JT takes extreme pride in helping business owners prepare and navigate the business sales process.  As an M&A Advisor, Broker and Consultant for 20+ years, he has structured hundreds of transactions for virtually any scenario, keenly understanding the needs of both buyers and sellers. 

JT indicates, “Most business owners are unaware of their options when it comes to preparing and selling their business.  These options can increase cash and decrease taxes by hundreds of thousands of dollars.  An educated decision is always the best.”

He then adds, “An owner’s weakest link is fear… without knowing how to proceed, they don’t.  We offer the tools, process and roadmap to proceed with confidence.”  

With over 25+ years of entrepreneurial ventures including five start-ups/sales, he has a solid understanding of what it takes to successfully create, expand and maximize business values. JT instinctively has the expertise and capacity to think about critical factors affecting the success of a transaction, providing an extremely valuable perspective and advantage for his clients.  

According to JT, “You’ll probably do this only once in your life… let’s do it right.”

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