Guarantor Considerations When Selling a Business
Guarantor obligations can have a significant impact on the sale of a business, yet they are often underestimated or only fully understood once a buyer begins reviewing contracts during due diligence.
In many companies, this type of structure exists behind leases, loans, supplier agreements, credit facilities, and equipment financing arrangements, meaning exposure is already embedded within the business long before a sale is considered.
Addendum Issues When Selling a Business
Addendum provisions frequently play an important role in business sale transactions, particularly when new information emerges after negotiations have already begun.
While many business owners focus on valuation, buyer interest, and deal structure when preparing for a sale, transaction documents can be equally important in determining whether a deal progresses smoothly toward closing.
Cease and Desist Letter Issues When Selling a Business
For business owners preparing to sell, understanding how these letters affect negotiations is essential—not only to protect legal standing, but to preserve deal value and maintain buyer confidence throughout the transaction process.
Cashier’s Check in Business Sales: What Sellers Need to Know
Cashier’s Check transactions are often associated with security and reliability, making them a common consideration during business acquisitions and sales.
As a transaction approaches closing, business owners become increasingly focused on one critical question: how can they ensure that payment is received as agreed?
Unlike personal checks, which depend on the account holder’s available balance, a Cashier’s Check is issued and guaranteed by a financial institution.
This added assurance has made it a trusted payment instrument in many high-value transactions.
What Is a Prenup? Protecting Business Value Before a Sale
What is a prenup? A prenuptial agreement is a legal contract signed before marriage that establishes how assets, liabilities, and financial interests will be treated if the marriage ends. While prenups are commonly associated with personal wealth protection, they can be particularly important for business owners whose companies represent a significant portion of their […]
Fiduciary Meaning: What Business Owners Must Know Before Selling
Fiduciary meaning becomes especially important when a business owner decides to sell their company.
Selling a business is not just another financial transaction—it is often the result of years or even decades of work.
The decisions made during the process can affect your final sale price, taxes, future wealth, employees, and long-term financial security.
In simple terms, a fiduciary is someone who is legally and ethically expected to act in your best interests.
In the world of mergers and acquisitions, that responsibility matters because business owners rely heavily on advisors during the sale process.
Per Stirpes in Business Sales: A Strategic Owner’s Guide
er stripes is an estate distribution principle that increasingly shapes how business ownership transitions during a sale or succession event.
In M&A transactions, Per Stirpes determines how ownership rights are passed through family lines when a shareholder is no longer alive at the time of a liquidity event.
For business owners preparing an exit, Per Stirpes is not simply a legal concept—it directly influences valuation clarity, deal structure, and buyer confidence.
In privately held companies, buyers prioritize clean ownership structures.
When Per Stirpes is clearly defined, it ensures that equity does not become fragmented or disputed across unexpected heirs.
For example, in Company A, a founder’s intent to allocate equity among two heirs remains intact even if one heir passes away, because Per Stirpes directs that share to their descendants rather than redistributing ownership unpredictably.
At Elkridge Advisors, we consistently see how this framework arrangements can either streamline or complicate transactions depending on how well they are documented before a sale begins.
Reach out to Elkridge Advisors to evaluate whether your ownership structure supports a clean and transferable exit.
True Up Explained for Business Sellers Who Want a Stronger Exit
If you are preparing to sell your company, there is one concept that can quietly move hundreds of thousands or even millions of dollars in your deal: true up.
Most sellers focus on valuation multiples, EBITDA, and headline price.
Sophisticated buyers focus just as much on post closing mechanics. And the true up is one of the most important of those mechanics.
Let us break it down in plain English.
Bearer Bonds Explained for Business Owners Preparing to Sell
Bearer bonds are one of those financial instruments that many business owners have heard of but few truly understand.
When you are preparing to sell your business and aiming for a strong valuation, knowing how instruments like bearer bonds fit into modern transactions can help you avoid surprises and position your deal correctly.
If you want clarity on how every asset and liability affects your exit, the team at Elkridge Advisors is always here to help.
