When an immediate sale is not enough
An owner may want to exit a distressed business while finding that the available sale price would not support their current lifestyle. 37D’s proposed DwtD structure considers purchasing and operating the business in exchange for an agreed monthly payment until the seller dies.
The acquiring company takes responsibility for the operating business under the agreed transaction and participates in any upside. The seller’s payment is a contractual obligation of the acquiring company, rather than an insurance-backed payment or a government guarantee.
Start with the business and the owner’s objectives
The review needs to consider the business’s operating condition, debt, assets, obligations and realistic earning capacity. It also needs to establish what the owner wants from an exit, their preferred involvement and the transition the team and customers would need.
This is a negotiated acquisition structure. The monthly amount, payment start date, duration trigger, security if any, defaults, remedies, tax treatment and what happens on insolvency or a later sale must be addressed in the transaction documents.
Understand the payment obligation
A contractual promise depends on the financial ability and enforceable obligations of the acquiring company. It should not be confused with a risk-free income stream. The seller should obtain independent advice and assess the proposed payer and any protection negotiated.
Existing company debts, guarantees and claims do not disappear merely because an owner sells. Which liabilities transfer, are repaid or remain with a party must be settled in diligence and the final agreement.
A confidential first conversation
Tell us the business type, location, approximate scale and why the current sale options are not meeting your objectives. We can arrange an NDA before sensitive financial information is supplied.
Your next step
Request a conversation, pricing, partnership information or relevant case studies and testimonials where available. Your selection and fast-track code are filled automatically.
Discuss this opportunity → Review or request a confidentiality agreement →Who we work with
37D excludes cannabis businesses, businesses with 51% or more of sales from alcohol, gaming businesses and businesses involving nudity from its services and acquisitions. All alcohol products are excluded from sourcing and trade. Higher Ground beverage supply to casino customers is a limited exception to the gaming-business exclusion; it does not extend to gambling operations, financing or acquisitions.