Deal Structuring

There is an old axiom which dictates that, while the seller determines the price of his or her company, the buyer sets the terms or “structure”. While sellers tend to prefer all cash for their companies, such a structure may not produce the highest overall value for the business and can limit the prospective buyer universe.

Depending on the specifics of the deal, sellers can use structures to optimize taxes, participate in the future success of the business, and maximize the purchase price from the sale of the company. Buyers can use structures as a way to manage cash flow, aid in the transition of an owner-dependent business, bridge the gap between buyer and seller value expectations, and finance the transaction.

PeriGrow realizes that, just like price, deal structure is negotiable and can vary widely from one transaction to the other. The individual needs of sellers and buyers are considered in structuring each transaction in the most appealing manner to meet both parties’ objectives.