Has anyone looked at a deal where the company is delinquent on sales taxes?
The sales tax liability is material - about $1.8 million on a company doing $5 million in revenue. Clearly, this is a red flag but management has been upfront about it and the owner intends to use the sales proceeds to repay the tax liability.
Could something like this get bank financing if the proceeds sit in escrow for tax liability repayment?
Back Sales Taxes
by a searcher
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
41 views
7 comments
Sign in to see all replies.
Create an account.