CHAPTER 15

Deal Terms

The seller isn’t just interested in the price you’ll pay for their company. They also want to know where you will get the money, when you will pay, what (exactly) you are buying, how long the process will take, and their time commitment to the business after the sale. Answers to these questions help the seller assess your ability to close the deal, your offer price, and the postsale plans—important aspects of the deal for any seller to evaluate. Before you can make the offer, you need to determine your position on each of these important parameters.

How You Are Financing the Acquisition

If you are like most buyers, you will use a combination of debt and equity to finance your purchase. We will discuss both of these in more ...

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