Selling a company with debt is one thing, but selling a troubled company or selling a distressed company is another.  So before we get started, let’s clarify what we mean: Selling a Healthy Company with Debt.

Businesses incur debt in the normal course of operations – from trade payables to a term loan from your bank.  Using debt smartly frees up business capital for other purposes. In most cases, you will use the proceeds from the sale to pay off the debt.  However, it is certainly possible for a buyer to assume your business debt as part of transactions.  

Trade payables will be much easier to assume for a buyer than term debt. Consider this if you are approaching a decision to sell:  it is likely easier to structure a sale with a buyer assuming your Accounts Payables and not your long term (bank) debt. 

Overall, selling a company with financial problems can be a complex and difficult task.  If you don't have experience in this area it is essential to talk to a professional that does.  Contact CRB today to discuss your situation on a confidential basis.  

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