Does anyone have any experience rolling up companies requiring a license?
October 02, 2022
by a searcher in Ashland, NE 68003, USA
I would like to talk to someone that has experience rolling up companies that require a license, i.e., plumbing, electrical, and HVAC. Any advice on how to overcome this obstacle would be greatly appreciated.
from University of Oxford in San Francisco, CA, USA
1. For an SBA loan - if biz requires licensing, you have to have passed that test before closing (or a license-carrier would have to be on loan).
2. For CA, miles better if the seller holds a 'corporation license' rather than a sole proprietor license, which means other future owners can hire an RME/RMO, as sole proprietor license-holders can only legally sell their company to another full license-holder.
3. For CA, buying a company in a sector where I don't have the license would mean that until I can qualify myself (meant to be 4-6yrs vbut there are shortcuts), I would need an actively contributing RME (>32hrs pw) or an RMO (exercises “direct supervision and control", and if <10% stake needs a Bond, and if <20% stake can only be RMO for 1 company).
from The University of Chicago in Chicago, IL, USA