How to do an asset sale while using current owners license

by a searcher from Miami University of Ohio

3 weeks ago

I am currently under LOI with an HVAC and Plumbing company in Ohio. The current plan is to use the current owner's license until I can get my own. 

SBA banks are saying we need to Roll equity, (in the current LOI) but with rolling equity we can not do an asset deal. 

Does anyone have experience using the seller's license and doing an asset deal using an SBA loan? 

TIA

1 like
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32 comments

searcher from Stanford University

I can't speak to how licensing works in Ohio, but if I were to do this in California, I would simply have the seller become the license holder (called RMO in CA) for the new, acquiring entity. In California, it would be a new license for the new entity with the seller serving as the qualifier for the license. Things could work very differently in Ohio, though.

2 weeks ago | like reply | 0 likes

searcher from Keller Graduate School of Management of DeVry University

I purchased a trade company in the past, an installer served as RME for awhile. Most likely one of the installers at the HVAC/Plumbing company can qualify.

3 weeks ago | like reply | 0 likes

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