Phase 04: Acquire

Legal & Tax

Entity structures, acquisition financing, tax optimization, seller financing, and working with professional advisors.

69 articles

Guide

SBA 7(a) Loan Requirements, Rates & Application Process

Everything about SBA 7(a) loans: eligibility, terms, the application process, capital stack structuring, lender selection, and common pitfalls.

17 min read

Legal

Asset Purchase vs. Stock Purchase: Thorough Comparison

Tax implications, liability exposure, contract transferability, and employee considerations - asset vs. stock purchase for business acquisitions.

14 min read

Legal

QSBS (Qualified Small Business Stock): The Complete Guide

Section 1202 QSBS exclusion: eligibility, C corp requirement, $50M test, 5-year holding period, and strategies for search fund transactions.

15 min read

Legal

Search Fund Legal Structure & Entity Setup

US (LLC/LP) and European structures (SAS, GmbH, Ltd) explained, including the two-entity model and tax implications.

8 min read

Guide

How to Finance a Search Fund Acquisition

Capital stack overview: senior debt, SBA loans, European government programs, seller notes, and equity structuring.

7 min read

Guide

The Capital Stack Explained: Senior Debt to Equity

Every layer of acquisition financing explained: senior debt (SBA, bank, private credit), mezzanine, seller notes, preferred equity, and common equity.

14 min read

Guide

Creative Financing: 10 Ways to Fund an Acquisition

Beyond bank loans: seller financing, SBA structures, ROBS, earn-ins, equity partners, HELOCs, revenue-based financing, and asset-based lending.

16 min read

Guide

Mezzanine Financing for Business Acquisitions

What mezzanine debt is, typical terms (rates, warrants, PIK), when to use mezz in acquisition structures, and finding mezz lenders for SME deals.

10 min read

Guide

Rollover Equity: Keeping Sellers Invested

Rollover equity structures, tax benefits for sellers, typical rollover percentages, alignment of interests, governance, and exit provisions.

10 min read

Guide

Vendor Take-Back (VTB) Financing: A Deep Dive

VTB structure, typical terms, security and subordination, benefits for buyers and sellers, negotiation strategies, and VTB across jurisdictions.

10 min read

Investor

Equity Waterfall & Distribution Mechanics in Search Funds

Waterfall structures, preferred returns, catch-up provisions, carried interest tiers, GP/LP splits, step-up economics, and worked examples.

12 min read

Guide

Personal Guarantees in Business Acquisitions: What to Know

When PGs are required, SBA requirements, negotiating PG terms, limiting exposure, spousal guarantees, burn-off provisions, and risk management.

10 min read

Guide

How to Negotiate Debt Terms for Your Acquisition

Interest rates, amortization, covenants, prepayment terms, collateral - how to negotiate the best bank debt terms for your acquisition.

10 min read

Regional

British Business Bank & UK Acquisition Financing

Enterprise Finance Guarantee, Start Up Loans, regional growth funds, and private lenders for UK business acquisitions.

10 min read

Regional

ICO Spain: Government Financing for Business Acquisitions

ICO loans, ENISA participative loans, CDTI, regional programs, SGR guarantees, and tax considerations for Spanish acquisitions.

10 min read

Regional

SIMEST Italy: Financing for Italian Business Acquisitions

SIMEST, Invitalia, Fondo di Garanzia, Confidi, regional programs, and tax considerations for Italian acquisitions.

10 min read

Regional

Almi & Højvækstfonden: Nordic Business Acquisition Financing

Almi (Sweden), Højvækstfonden (Denmark), Innovasjon Norge, and Finnvera financing programs for Nordic business acquisitions.

10 min read

Regional

MKB Financing Netherlands: Dutch Acquisition Loans

BMKB government guarantee, Qredits microfinance, ROMs regional development, and Dutch bank acquisition lending for MKB businesses.

10 min read

Regional

Swiss Cantonal Banks & Acquisition Financing

Cantonal banks, Bürgschaftsgenossenschaften guarantees, federal programs, and Swiss tax considerations for business acquisitions.

11 min read

Guide

CDFI & Community Lenders for Acquisition Financing (US)

Community Development Financial Institutions, New Markets Tax Credit, CDFI lending programs, and how to combine CDFI with SBA financing.

10 min read

Regional

BDC Canada: Business Development Bank Acquisition Financing

BDC acquisition loans, subordinate financing, CSBFP program, provincial programs, and Canadian tax considerations for business acquisitions.

11 min read

Regional

EIF & European Investment Fund Programs for SME Acquisitions

InvestEU SME Window, COSME guarantees, EIF equity programs, and country-specific EIF partnership programs across Europe.

9 min read

Legal & Tax

Foreign Investment Screening: FDI Rules by Country

Understand Foreign Direct Investment (FDI) screening regulations across the US (CFIUS), EU, UK, Germany, France, and Italy - and how they affect search fund cross-border acquisitions.

11 min read

Legal & Tax

Business Licensing & Permits: What Transfers in an Acquisition?

Learn which business licenses and permits transfer in stock purchases vs. asset purchases, common license types by industry, and due diligence steps to avoid operational disruption.

10 min read

Financing

Government-Backed Loans & Grants for Business Acquisitions

Compare government-backed acquisition financing programs worldwide - SBA (US), BDC (Canada), KfW (Germany), Bpifrance (France), British Business Bank (UK), and more.

11 min read

Legal & Tax

Tax-Friendliest Countries for Business Acquisitions

Compare tax environments across major jurisdictions - corporate rates, goodwill amortization, capital gains treatment, and holding company structures for business acquisitions.

11 min read

Financing

SBA Loans for Acquisitions: State-by-State Guide

Manage the SBA lending environment across the US - top lending states, state-level factors, finding lenders, and tips for SBA acquisition loan approval.

11 min read

Guide

Employment Law in Business Acquisitions: TUPE, WARN & More

TUPE automatic transfer, WARN Act notice requirements, benefits/compensation handling, works councils, and stock vs. asset purchase employment impact.

12 min read

Guide

Intellectual Property Due Diligence & Transfer

IP ownership verification, trademark/patent registration, contractor assignments, open-source audits, and IP transfer in asset vs. stock deals.

9 min read

Guide

Data Privacy (GDPR/CCPA) Considerations in Acquisitions

GDPR due diligence data sharing, consent transfer, CCPA compliance, privacy notice updates, and stock vs. asset deal data privacy impact.

9 min read

Guide

Shareholder Agreements for Post-Acquisition Governance

SHA provisions: board composition, reserved matters, drag-along/tag-along rights, good leaver/bad leaver, vesting, and exit mechanisms.

10 min read

Guide

Real Estate Considerations in Business Acquisitions

Lease review, buy vs. lease analysis, sale-leaseback strategy, property-owned vs. tenant scenarios, and environmental assessment requirements.

9 min read

Guide

Holding Company Tax Optimization: Parent-Subsidiary Structures

Interest deductibility, participation exemptions by country, tax consolidation regimes, and common pitfalls in holding company structures.

10 min read

Regional

Intégration Fiscale (France): Tax Consolidation for Acquisitions

French tax consolidation: 95% ownership requirement, PLTA mechanics, interest deduction benefits, Amendement Charasse, and setup steps.

9 min read

Regional

Organschaft (Germany): German Tax Consolidation

German Organschaft: profit transfer agreement (PLTA), Körperschaftsteuer and Gewerbesteuer consolidation, Zinsschranke, and setup requirements.

9 min read

Guide

Double Taxation Treaties: How They Affect Acquisitions

DTT mechanics, withholding tax rates by country pair, dividend/interest/capital gains articles, EU Parent-Subsidiary Directive, and substance requirements.

12 min read

Guide

Goodwill Amortization & Tax Deductions in Acquisitions

Goodwill tax treatment by country: US (15 years), Germany (15), Spain (20), Italy (18), Netherlands (5-10), UK (none), France (none), and deal structuring implications.

10 min read

Regional

SL vs. SA: Spanish Entity Structures for Buyers

Sociedad Limitada and Sociedad Anónima comparison: capital requirements, transfer taxes, ENISA compatibility, and typical Spanish deal structures.

9 min read

Regional

SRL vs. SPA: Italian Entity Structures for Acquisitions

SRL and SPA comparison: capital requirements, governance models, PEX participation exemption, and typical Italian acquisition structures.

10 min read

Regional

BV vs. NV: Dutch Entity Structures for Acquisitions

BV and NV comparison: Flex-BV reform, fiscal unity, participation exemption, STAK structures, and Dutch acquisition tax planning.

10 min read

Guide

Step-Up in Basis: Tax Benefits for Asset Purchases

Step-up in basis mechanics, Section 197 intangibles, purchase price allocation, annual tax savings calculation, and negotiation strategies.

10 min read

Guide

338(h)(10) Election: Treating a Stock Sale as an Asset Sale

How the 338(h)(10) election works, S-Corp use case, buyer and seller tax impact, comparison with asset purchase, and practical examples.

10 min read

Guide

Acquisition Insurance: R&W, Key Person & D&O

Representations & Warranties insurance, key person insurance, D&O coverage, E&O, cyber liability, and environmental insurance for acquisitions.

10 min read

Regional

SAS vs. SARL: French Legal Structures for Acquisitions

SAS and SARL comparison: governance, share transfers, social charges on dividends, investor compatibility, and typical French acquisition structures.

10 min read

Regional

GmbH vs. UG: German Entity Structures for Buyers

GmbH and UG comparison: minimum capital, notarization requirements, Organschaft tax consolidation, and typical German acquisition structures.

10 min read

Regional

Ltd vs. LLP: UK Entity Structures for Acquisitions

UK Ltd and LLP comparison: Corporation Tax vs. income tax, share classes, stamp duty, investor compatibility, and EMI share options.

9 min read

Investor

Search Fund Investor Economics: Step-Up, Carried Interest & Returns

How search fund investors make money: two-stage capital commitment, the 1.5x step-up mechanism, equity allocation, return drivers, and portfolio construction.

15 min read

Guide

How to Structure a Leveraged Buyout (LBO) for SMEs

LBO fundamentals, SME capital stack, worked example with sources/uses, 5-year value creation model, sensitivity analysis, and use red flags.

15 min read

Guide

Self-Funded Search with SBA Financing: The 80/10/10 Structure

How self-funded searchers use SBA 7(a) loans to acquire businesses with 10% equity: the 80/10/10 structure, terms, example deal, advantages, and risks.

14 min read

Legal

Tax Optimization for Search Fund Acquisitions

Asset vs stock purchase, QSBS, Dutreil pact, holding structures - tax strategies for US and European acquisitions.

7 min read

Guide

Working with Advisors: Lawyers, Accountants & Brokers

When to hire, how to select, typical fees, managing the advisory team, and avoiding over-reliance.

12 min read

Guide

Seller Financing: Structures, Terms & Negotiation

Seller notes, subordination agreements, typical terms (2-5yr, 4-6%), earn-out alternatives, and negotiation strategies.

12 min read

Legal

Share Purchase Agreements (SPA): Key Clauses Explained

The 12 most critical SPA provisions: purchase price mechanics, reps & warranties, working capital adjustment, indemnification, closing conditions, seller covenants, and disclosure schedules.

15 min read

Legal

Asset Purchase Agreements (APA): What Buyers Need to Know

Essential APA provisions: purchased assets, assumed liabilities, purchase price allocation (IRS Section 1060), contract assignment, employee matters, and tax advantages.

14 min read

Legal

Capital Gains Tax on Business Sales by Country

CGT rates and exemptions for business exits in the US, France, Germany, UK, Spain, Italy, Switzerland, Netherlands, and Canada - with effective rates and planning implications.

16 min read

Guide

Cross-Border Acquisitions: Legal & Tax Guide for Search Fund Buyers

Direct vs. holding company structures, tax treaty networks, CFC/NCTI rules, transfer pricing, FDI screening, withholding taxes, currency risk, due diligence differences, and worked examples for US buyers acquiring UK and LatAm businesses.

22 min read

Legal

C-Corp vs. S-Corp vs. LLC: US Entity Structures for ETA

Side-by-side comparison of C-Corps, S-Corps, and LLCs for search fund and self-funded acquisitions: taxation, QSBS eligibility, investor compatibility, and when to use each.

15 min read

Legal

Holding Company Structures for Search Fund Acquisitions

Why use a HoldCo, US and European structures (France, Germany, UK), tax consolidation, setup process, and common mistakes.

14 min read

Legal

Dutreil Pact: French Business Succession Tax Exemption

The Pacte Dutreil explained: 75% transfer tax exemption, three phases (collective commitment, transfer, individual commitment), practical scenarios, and quantified tax savings.

16 min read

Guide

Leveraged Buyout Mechanics for Small Business Acquisitions

LBO mechanics for small-business acquisitions: capital structure, leverage ratios, return drivers, modeling assumptions, debt sources, key risks, and worked examples.

14 min read

Financing

SBA 7(a) Loans for Business Acquisitions: Complete Guide

Everything you need to know about SBA 7(a) loans for buying a business: eligibility, the 80/10/10 structure, application process, seller note standby rules, and common pitfalls.

15 min read

Finance

Debt Structure Optimization for Search Fund Acquisitions

How to structure acquisition debt for search fund deals - senior debt, mezzanine, seller notes, leverage ratios, covenants, and refinancing strategies.

13 min read

Legal

Merger vs. Acquisition: Legal, Tax & Strategic Differences

Understanding the legal, tax, and strategic differences between mergers and acquisitions - structures, implications, and when to use each approach.

18 min read

Legal

Transfer Pricing Considerations in Acquisitions

How transfer pricing affects M&A transactions - due diligence risks, documentation requirements, OECD guidelines, and post-acquisition restructuring.

18 min read

Legal

Regulatory Approvals & Antitrust Review in M&A

Managing merger control and antitrust review - filing thresholds, review timelines, remedies, gun-jumping rules, and sector-specific approvals.

16 min read

Legal

Post-Closing Disputes: Earn-Outs, Indemnities & Resolution

Managing post-closing disputes in M&A - working capital adjustments, earn-out disagreements, indemnification claims, and dispute resolution mechanisms.

18 min read

Legal

Professional Liability Insurance in Business Acquisitions

Understanding D&O, E&O, and R&W insurance in acquisitions - coverage types, tail policies, cost benchmarks, and when insurance is essential.

14 min read

Legal

Restrictive Covenants in M&A: Non-Competes, Non-Solicits & More

A guide to restrictive covenants in acquisitions - non-competes, non-solicitation, confidentiality, enforceability by jurisdiction, and FTC implications.

12 min read

Legal

Anti-Bribery & Anti-Corruption Compliance in M&A

Managing anti-bribery and corruption risks in acquisitions - FCPA, UK Bribery Act, due diligence frameworks, and post-acquisition compliance programs.

12 min read

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