Huge liability, especially in certain states. I hope this is not for Gov. Contracting, where it is even more critical. Even misclassification of job titles/roles can lead to huge fines by DoL and lawsuits from employees.

@Jed Morris Oh, so you are saying if you acquire a company in an asset sale, you take on their skeletons too? That is why I thought people don't do the stock purchase piece, but I'm just learning.

Congratulations it can be a stressful time. Now it’s time to focus on execution and operation.

@Jed Morris I went back and checked the assessors breakdown of property value. They did not change it after I acquired it 4.5 years ago, nor when I pulled a building permit and added 5,000 more square fee. The town has the current taxes at 1/2 of what I bought it for 4.5 years ago. Only considering land and actual building value. I called the broker and spoke about this, as it effects the IRR predictions in the pro-forma for the buyer. He also added a property management fee assumption in year 1 that also hurt the deal ROI. I had him take that out too, as it is meant for an owner/Operator and not a big REIT. It should just all count toward SDE. Thoughts?

I see what you are saying about separating them into two entities. I did not do that in this case. I did do it with another acquisition, where I purchased a shed sales business with it, that in turn rented the office back from the storage company. T he off market deals I've done so far, just lumped the real estate with the value of the business, but realistically, it was just the NOI and a cap rate. Not really the value of the property. I'd love to jump into a Q&A session to talk it through. It is not as easy with txt messages.

I have a veteran buddy who is selling a commercial cleaning company. He may be willing to talk to you. Like Jed, I have government contracting experience, but not in commercial cleaning.

@Sam Mahfoud I don't know if you are still searching, as I just noticed this is from months ago. But if you are, let me know and I'll connect you.

@Jed Morris We also "heard" their bank would not allow us to only do a 5-year term. That they wanted it to be the same long term as the bank. I was not looking to tie up that much money for that little interest and for that long. Sounded good on the surface but got uglier as we dug deeper into it.