Buy a Home Services Business: PE Roll-Up Targets in 2026
Active home services acquisition opportunities for PE buyers and search funds. HVAC, plumbing, electrical, roofing, pest control — what’s actually for sale and at what multiples.
Definitive Purchase Agreement: 12 Key Elements & Provisions Explained (2026)
What’s in a 50-150 page DPA: reps & warranties, closing conditions, indemnification, working capital adjustments, and the 12 sections that decide who pays what post-close.
Section 338h10 Election Explained for Business Sellers
Section 338h10 Election Explained for Business Sellers Quick Answer A Section 338(h)(10) election recharacterizes a stock purchase as an asset purchase for federal tax purposes, allowing the buyer to step up asset basis and accelerate depreciation while potentially preserving capital gains treatment for the seller. The election requires the buyer to acquire at least 80 […]
Tax-Free Reorganizations: A Roadmap for Smooth Business Sales
Tax-Free Reorganizations: A Roadmap for Smooth Business Sales Quick Answer A tax-free reorganization under IRC Section 368 lets founders exchange their business equity for acquiring company stock and defer federal income tax on the gain until they later sell that stock, preserving significant equity value compared to a taxable cash sale. The structure requires continuity […]
How Break-up Fees Work in M&A Transactions
How Break-up Fees Work in M&A Transactions Quick Answer A breakup fee is a contractual payment a seller must make to the buyer if they terminate or abandon the deal, typically ranging from 1% to 3% of deal value. This fee compensates the buyer for time and resources spent on negotiation and discourages sellers from […]
Reps & Warranties Insurance Explained for Sellers (2026 Guide)
How R&W insurance shifts indemnification risk from seller to insurer. Premiums (2-4% of policy limit), coverage scope, and when it makes sense for $10M+ deals.
Drag-Along & Tag-Along Rights Explained: What Owners Need to Know Before Signing
How drag-along and tag-along clauses affect founders in PE recaps and partial sales. Real examples, what to negotiate, and the 3 traps that catch first-time sellers.
Evaluating Revenue Quality: Factors Buyers Prioritize
Evaluating Revenue Quality: Factors Buyers Prioritize Quick Answer Buyers prioritize recurring revenue, predictable cash flow, and sustainable earnings that align with actual operating performance over one-time gains or accounting adjustments. Quality of earnings analysis strips away non-recurring items, timing shifts, and non-cash adjustments to reveal the durable core of a company’s results that will support […]
Contingent Liabilities That Can Sink M&A Deals
Contingent Liabilities That Can Sink M&A Deals Quick Answer Contingent liabilities that can derail M&A deals include undisclosed financial obligations, poor accounting records, compliance gaps, unresolved employee disputes, and unresolved contract issues that surface during due diligence. These hidden exposures erode buyer confidence and can cause deals to stall or fail, particularly when discovered late […]