The owner of an NAPL client-member company has been exploring Growth By Acquisition. He knows that paying a big price with a chunk of cash is out of the question because he does not want to take on all the performance risk.
Here's my quick input when he asked, "What
kind of transactions are out there for M&A?"
- Buy general intangibles paid for with royalty of 10% of sales for 3 years (pure tuck in)
- Buy general intangibles as
above AND buy some equipment for cash at Liquidation Value
(financed) perhaps via an assumed restructured equipment lease
- Form a Manufacturing Agreement in which the seller liquidates the balance sheet, and sends work to you (they in essence become your customer on a trade relationship)
- Buy all their assets and you
liquidate AR, equipment, and work out the debts so they don't have to incur these painful tasks
- [Contact me for this nugget]
- [Contact me for this nugget.....right out of the M&A lab!]
There’s more, and many variations……but please keep in mind, this is why you hire experts such as me, you don’t have to be the expert yourself, just do enough homework so you can make decisions!!!!





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