The owner of a small furniture manufacturer is retiring and is interested in selling the business to her fifteen employe
Posted: Tue Nov 16, 2021 7:52 am
The owner of a small furniture manufacturer is retiring and is
interested in selling the business to her fifteen employees. The
firm owns all its building and equipment and has an inventory of
wood, finished products the company values at $50,000.00 and an
existing mortgage loan with a $100,000.00 balance. The owner is
asking $1,000,000.00 for the business and all its assets.
Assuming the employees do not simply have $1,000,000.00 cash on
hand, identify and explain which source(s) of financing could
support this transaction.
interested in selling the business to her fifteen employees. The
firm owns all its building and equipment and has an inventory of
wood, finished products the company values at $50,000.00 and an
existing mortgage loan with a $100,000.00 balance. The owner is
asking $1,000,000.00 for the business and all its assets.
Assuming the employees do not simply have $1,000,000.00 cash on
hand, identify and explain which source(s) of financing could
support this transaction.