acquiring shares in a company

Market Update April 2016 - structuring a sale

We're already in April and the first quarter of 2016 has passed. We had a frantic start to the year with quite a few sales the beginning of February as history has told me more vendors list their businesses for sale in the later half of the year. Having said that I've already listed quite a few new businesses and rent rolls. Some of these vendors are returning vendors that sat down with me a couple of years ago and after some fact finding and soul searching it just wasn't the right time to sell.

Why Buy Shares in a Company vs Re-Sign New Agreements

There are many advantages and disadvantages to acquiring a rent roll or agency with the shares in the company that holds the agency agreements, versus re-signing all new agreements in to your company or from the vendor's company. It is becoming more and more common, and I am seeing more and more vendors requesting the shares in their company be sold, rather than re-sign new agreements. For the vendor, there is massive upside, but for the purchaser, beware!