What would you pay someone to do the seller’s job?
Consider a fictional $750k HVAC acquisition with the same $600k loan in two scenarios. With the buyer doing the seller’s job, debt coverage is 2.06×. Put a $95k manager in that seat and coverage falls to 0.97×. The business comes up about $2,356 short on annual payments before the buyer takes a distribution.
Before an LOI, I’d ask the seller to walk me through last week’s calendar. Who quoted the jobs, handled callbacks and approved overtime? For searchers who have priced a replacement, which of those duties changed your hiring budget the most?
Before an LOI, I’d ask the seller to walk me through last week’s calendar. Who quoted the jobs, handled callbacks and approved overtime? For searchers who have priced a replacement, which of those duties changed your hiring budget the most?
