Not surprisingly much of the focus in an M&A deal is on the deal price in the transaction. We are quick to remind everyone involved that the structure of the deal is as important as the price. We are also quick to point out that the dream of being paid 100% cash at closing is seldom realized. In many cases, 10-25% of the purchase price is paid after the closing. The buyer and their financing sources want to mitigate some of their risk and often want a seller to remain somehow engaged in the business. While the seller can refuse to accept anything other than cash at closing, they severely limit their options and perhaps miss out on additional upside dollars. We believe a very important part of any transaction is balancing the risk and reward of the post closing payment for both sides. Deals can be properly priced but poorly structured, increasing the possibility for one side to walk away before closing. If you think you or your clients might benefit from our experience in structuring deals that will close, please give us a call. Click Here to Email Jeff @ Beacon
