How to Get, Avoid, or Negotiate Personal Guarantees

How to Get, Avoid, or Negotiate Personal Guarantees

Can’t attend? Register now to access materials shared after the event.

Live streaming will NOT be broadcast on Searchfunder.

Go here to register: https://partneroncall.com/avoiding-personal-guarantees/

Reality. Pitfalls. Alternatives. Workarounds. Dos & Don’ts. Contributions by numerous experts.

Plus: How sellers can get PGs.

After registering, you’ll receive a confirmation email with info about joining the meeting.

Send me your Qs well before the event if you want me to try to address them.

(Space IS limited.)

Here’s a summary of my upcoming webinar on avoiding personal guarantees in mergers and acquisitions (M&A). You’ll get my view (Business Buyer Advocate), on the basis of guiding small and midsized business buyers for over 30 years.

The webinar covers the reality, pitfalls, alternatives, workarounds, dos, and don'ts associated with PGs. I explain that while it is rarely possible for buyers to avoid PGs, it is possible to negotiate concessions or limitations to water down the PG. I advise buyers and sellers to begin with realistic, informed expectations and not act upon their unreasonable expectations. I also explain that sellers risk their confidentiality every time they communicate with a potential buyer.

Buyers must correctly respond to sellers who demand PGs. There is zero room for anyone to wing this kind of conversation. I advise sellers and buyers to build bridges to a negotiation rather than a walk-away.

Reality: Avoiding PGs is negotiable if buyers and sellers know how to do it.

You’ll get tips on how to avoid giving a personal guarantee (PG) when seeking financing or acquiring a business entity. The tips include negotiating with the seller or lender, asking for alternative financing, improving credit score, and hiring a competent lawyer. It is also important to understand why the other party is requesting a PG and the implications of signing one.

The presentation also highlights the risks of becoming personally liable for corporate debts, even without signing a PG, and the factors that can pierce a corporate veil, making one personally liable for corporate debts.

Finally, the presentation emphasizes the importance of negotiating the terms and scope of the PG obligation, including disclosure, triggering events, recourses, and ongoing obligations.