What Happens When You Sell Your Business to Private Equity
We guide founders through a structured, high-stakes transition. A sale to a professional buyer changes how a company runs. It brings new leadership, performance metrics, and a sharper focus on growth. How CT Acquisitions Works $0 to sellers. The buyer in our network pays us at close. No retainer, no listing fee, no success fee, […]
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 […]
Mastering Basket and Cap in M&A Indemnification
Mastering Basket and Cap in M&A Indemnification Quick Answer Basket and cap are indemnification provisions in purchase agreements that control post-closing risk allocation between buyer and seller. A basket sets a minimum threshold of losses before the seller must indemnify the buyer, typically ranging from 10,000 to 100,000 dollars or 0.5 to 1 percent of […]
Representations and Warranties: Safeguarding Deals for All Sides
Representations and Warranties: Safeguarding Deals for All Sides Quick Answer Representation and warranties insurance covers losses from breaches of a seller’s statements in a purchase agreement, with premiums typically running 2% to 4% of the coverage limit. This policy shifts post-closing exposure to an insurer, allowing buyers and sellers to reduce escrow holdbacks, streamline indemnity […]
Letter of Intent: What It Means and What to Watch For
Letter of Intent: What It Means and What to Watch For Quick Answer A Letter of Intent is a preliminary written document that signals one party’s commitment to pursue a business deal and outlines basic terms, timing, and scope before a final contract is signed. It clarifies expectations and protects both parties during negotiation without […]
Quality of Earnings: What Buyers Need to Know
Quality of Earnings: What Buyers Need to Know Quick Answer Quality of Earnings is a financial review that validates a company’s true earning power by stripping out one-time gains, accounting adjustments, and non-recurring items to show buyers reliable EBITDA and sustainable cash flow. This analysis typically costs between 35,000 and 150,000 dollars depending on complexity […]
What Is a Search Fund Buyer — and Should You Trust Them?
What Is a Search Fund Buyer — and Should You Trust Them? Quick Answer A search fund buyer is an entrepreneur who raises capital from investors to identify and acquire a single privately held company, then operate it for growth and eventual exit. Search funds typically focus on businesses with strong fundamentals and sustainable competitive […]
The Pros and Cons of Selling to a Search Fund (No Sugarcoating)
The Pros and Cons of Selling to a Search Fund (No Sugarcoating) Quick Answer Selling to a search fund offers advantages like seller financing flexibility, earnout potential, and a buyer committed to long-term growth, but disadvantages include longer sales processes, less liquidity upfront, and dependency on the search fund operator’s execution ability. Search funds typically […]