Osterman: Commingling product lines prevents buyers from securing SBA acquisition loans
Harris Osterman · How to Build SaaS for an Industry No One Knows About (Except Your Customers) · Oct 16, 2024 · at 20:46
Harris Osterman, founder of Talk Hiring, reflects on corporate structuring hurdles that prevented prospective buyers from securing SBA acquisition financing.
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“The problem for our business was that we had multiple product lines under the same corporate entity, and therefore we were filing taxes every year as like a combination of all of our Product lines. And then, like, the SBA always wants to see the tax filings, and that's all they care about, and so we couldn't get, or buyers couldn't get SBA loans, and they had to go after different kinds of business financing, which definitely made it tougher to sell, and when I started the other product lines, like, I wasn't considering selling, but in hindsight, it would have been a lot easier to sell if they were separate entities.”
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