Searching for a business without a trade license - Qualifier

by a searcher

1 month ago

I know this questions has been asked a bunch of times and going through old post.. But thought I would ask anyway to meet new people. 

We're looking at different trade business in FL,..... plumbing, HVAC, etc. Currently, we don't hold any qualifier licenses. We're interested in keeping the current owner on board to qualify, but without giving them control over us. In one case current owner will stay to qualify but does not want to be involved in the business.
I am looking to network or meet anyone who has structured such a deal to safeguard our interests. I want to understand the steps others have taken and what will the lender require?

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searcher from Indiana University, Bloomington/Indianapolis - Kelley School of Business

We did this in CA. Seller retains 1% of the company and we use his license (in our case, GC) until we can transition it to one of the buying partners. In this approach, it becomes necessary to do a stock sale if you’re using the SBA. If you’re not using the SBA, you can still do asset purchase and give 1% of the new entity to the seller to make them part owner.

Alternatively we could have taken the Responsible Managing Employee route too. In this case, the license holder will be an employee of the business. For obvious reasons, it has some risk.

I believe these rules are also somewhat state specific. This is true for CA. I’d do some more research for FL.

1 month ago | like reply | 0 likes

admin from Massachusetts Institute of Technology - MIT Sloan School of Management

^Searchfunder member‌ have previously commented on licensed trades and might be interested in connecting with you here.

1 month ago | like reply | 0 likes

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