Long-term Relationships Result in
Higher Profit for Seller
The owner of a software-as-a-service (SaaS) company worked with WBL to prepare for the sale of his business.
"We worked with WBL for many years before we were ready to sell and they helped us put together a five-year exit plan," the owner said. "They gave us great advice which put us in a much better tax position."
During the transaction, WBL helped identify an issue that could have resulted in significant financial consequences to the seller. Because of WBL's longstanding and close working relationship with the seller and his attorneys, the team was able to work together quickly to address the issue.
The purchase agreement failed to properly account for the impact of the acquiring company's new debt facility. As a result, the value of the seller's interest in the acquiring company was overstated. This issue had the potential to reduce the sales price to the seller by 10% at the closing.
"I say that having Williams Benator & Libby doing your accounting all along will put you in a very good position."