@STLChrisH Sales generally but it depends. Do they have a cofounder with complementary skills? What industry?
In any case, I’d bet on someone who is a motivated and happy entrepreneur vs an unhappy one that is excellent at sales.
For $5-15M deals, what are market terms for Indemnity, Reps, & Warranties? How would the following compare?
Escrow: 3%, 1/2 at 6mo., 1/2 at 12mo. ability to offset against Seller Note
Nonfundamental R&W: Cap of 20%, Basket = 0.5% (non-tip), Survival Period = 15 mos
ETA Friday means LOI sent ✅
Very excited about this one! Great business with wonderful (retirement age) sellers.
Last deal died due to YTD decline and sellers not accepting LOI amendment terms (not quite at retirement age so still some juice to rebound -- I hope they do!)
Happy ETA Friday folks!
This morning, I had the distinct pleasure of sending a $4M price reduction (~35%) in a LOI amendment...
Did I want this? "Chances are near zero" - Oppenheimer
What am I expecting as a result? **see below**
@CTW_SMB totally! And context matters for sure…
think TTM included what is now evident as an anomaly year and thus a time reference range & new profit peg (and valuation EV) is reasonable
The key to most self funded searches is longevity. Think similar to time in the market rather than timing the market.
Significantly easier if you have/create financial runway to do so.
Results TBD if you’re like me: hard headed / have a bone to pick with the status quo.
@dig_deeper1 AZ or state should have an association that has a blank/template purchase contract. I would just ask friends or use your own prior copies and empty out the docs for new use (via a paid pdf subscription for $50 or AI)
For large #ETA self-funded deals, who you calling?
in LOI negotiations for a $3.5M EBITDA GovCon Prime business🤞
< 3.25x Purchase Price & < 2.5x Cash at Close
likely #SBA + Parri Passu + equity raise deal
hair is customer concentration but has contracts with 4+ yrs runway