Avoiding Pitfalls That Can Jeopardize a Sale

April 12th, 2010

Avoid delay in closing your deal!

Challenge
Kaulkin Ginsberg was hired to advise an owner in the sale of his national contingency collection agency. After a competitive process among multiple qualified buyer candidates, our client came to terms with a financial buyer who was acquiring an agency for the first time.

The agency held collection licenses across the U.S. At the onset of due diligence, we knew immediately that we had to address renewing these licenses within the allotted 60 day due diligence period. If the transfer or renewal of licenses in the name of the new owner is not addressed early on in due diligence, the seller risks a delay in closing or may face receiving a partial payment of the purchase price until all of the licenses have fully conveyed to the buyer.

Solution
We worked with the buyer and seller to determine the length of time needed to get licenses in place for the new owner. A timeline was created for conveyance, ensuring that each license was renewed under the new owner/company name, and that they adhered to various strict state guidelines.

We helped the buyer understand the timing and risks associated with license transfers, thus keeping to our closing timeline. This allowed our client to avoid having to negotiate against additional deal structure in the form of an escrow payment tied to the transfer of the licenses.

By working with the right professionals to proactively address the license transfer issue, we gave the seller, management, and the buyer the ability to focus on the remainder of due diligence without delay. The end result was a successful sale.

What Can We Do For You?
If you are contemplating a sale, we provide the advice, expertise, and information you need to ensure the right transaction happens at the maximum value achievable, with an extensive track record of success in ARM transactions.

To confidentially learn more about how we can help, please contact Mike Ginsberg,  at 240-499-3800 or by email.

Comments are closed.

LATEST BLOGS

Healthcare: The Ever-Growing Industry

April 25, 2017

The healthcare industry is one of the most widely analyzed industries in the US due to its seemingly never ending growth. As such, it's no surprise the ARM industry is so focused on the potential impact of a repeal and replace bill for the ACA. ....

» see this post    » all posts


The American Health Care Act: Potential Effects on ARM

March 20, 2017

Seven years after former President Barack Obama signed his signature bill, The Patient Protection and Affordable Care Act (ACA), there may actually be a repeal and replacement bill, hopefully fixing some of the problems incurred through the ACA. However, It's not clear whether this new bill will correct all of the problems associated with the ACA without creating a few new problems of its own. ....

» see this post    » all posts


Semiannual Employment Outlook for Q4 2016: Continued Optimism

March 17, 2017

Kaulkin Ginsberg's market intelligence team is optimistic about the current U.S. employment environment, specifically as it relates to the ARM industry. Overall, we believe the data suggests a significant increases in consumer spending will take place that will eventually drive debt accumulation throughout the economy, and thereby increasing revenue potential for the ARM industry.....

» see this post    » all posts


RECENT ANNOUNCEMENTS

ACA of Texas Publishes "Three Critical Healthcare Industry Trends for Outsourced Business Services" in its Winter 2017 Magazine

March 16, 2017

The ACA of Texas Publishes "Three Critical Healthcare Industry Trends for Outsourced Business Services" by Kaulkin Ginsberg in its Winter 2017 Magazine. Kaulkin Ginsberg details its belief that the growth in patient lending and financing programs, clinical integration networks, and physician quality reporting systems for the Centers for Medicare and Medicaid Services (CMS) could have profound effects on companies focused on servicing healthcare providers in 2017 and beyond.....

» see more




ACA of Texas Publishes "M&A Trends in the U.S. ARM Industry" in its Winter 2017 Magazine

March 15, 2017

The ACA of Texas Publishe "M&A Trends in the U.S. ARM Industry" an article by Kaulkin Ginsberg in its Winter 2017 Magazine. This article examines the key trends and developments driving M&A activity in the U.S. ARM industry by market segment.....

» see more




Mike Ginsberg Leading Panel Discussion at DBA International 20th Anniversary Conference

February 1, 2017

Mike Ginsberg, President and CEO of Kaulkin Ginsberg, will be speaking in a panel discussion on Trends in Debt Buying on Wednesday, February 8th at the DBA International 20th Anniversary Conference in Las Vegas, Nevada....

» see more