Entrepreneurship Through Acquisition (ETA)
Fafinski Mark & Johnson is on the cutting edge of Entrepreneurship Through Acquisition (ETA). FMJ represents entrepreneurs, searchers, investors, and self-funded searchers in Minnesota and around the country as they pursue ETA deals and look to purchase businesses, including self-funded searches and SBA-financed business acquisitions. From the initial search process and Letters of Intent (LOI) through due diligence, closing, and transition of ownership, our attorneys understand the entire process, including the potential pitfalls, best practices, and creative solutions needed to hit the ground running with your new business.
What is Entrepreneurship Through Acquisition (ETA)?
ETA is one of the fastest-growing paths to business ownership. It involves searching for and identifying proven businesses that allow a new owner to step in and focus on refining and advancing the operation instead of dealing with all of the issues involved with a startup. ETA is an appealing option for many of our clients because it provides more freedom and flexibility, including self-funded search options and attractive financing options. Buying an established business that has already achieved financial viability and established its products, services, and market identity is a more predictable path for many entrepreneurs. ETA also provides the opportunity for a new owner to avoid the uncertainty and often the lack of initial reliable income that comes along with a pure startup. To learn more, please click here to listen to Attorney Rob Fafinski discuss ETA and self-funded searches on the FMJ Law Podcast.
How do Our ETA Attorneys Help?
Our team of Minnesota-based Entrepreneurship Through Acquisition attorneys can help clients work through successful ETA deals across the country and across a diverse range of industries, including manufacturing, consulting and professional services, technology, healthcare and medical devices, real estate, renewable energy, sports & entertainment, education, aviation, and many more. We work on ETA deals all along the size spectrum, ranging from SBA to lower middle market. Similar to M&A and other types of commercial transactions, ETA and self-funded search deals can be complicated. With the strength of our commercial and M&A practice groups behind it, FMJ’s ETA team provides the same strong negotiations, creative solutions, compelling value, and responsive service, that lead to the to the positive experiences and outcomes our clients have come to expect from Fafinski Mark & Johnson.
Who Does FMJ Represent?
The firm represents a wide variety of entities involved in the ETA space, including the following:
- ETA Entrepreneurs
- Searchers
- Self-Funded Searchers
- Search Fund Operators
- First-Time Business Buyers
- SBA-Financed Buyers
- Investors
- Business Owners Transitioning Ownership
- Entrepreneurs Acquiring Lower-Middle-Market Businesses
List of Services
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Representative Transactions
The following transactions are a sample of the work FMJ has done over the last couple of years. These matters show the broad range of industries, services, deals, and parties/organizations we work with on a regular basis.
Represented the purchaser of a commercial HVAC company. This transaction included an F Reorg and many other complicated factors, including real estate issues and financial issues on the seller’s side that needed to be unraveled before the purchase could go through.
Represented a client in the sale of an engineering consulting business to an existing employee. The deal involved a 100% transfer of the membership interests in the company to the existing employee. The transaction grew complicated due to health issues with one of the sellers, but FMJ was able to help all parties negotiate this difficult situation.
Represented the buyer in the purchase of a designer and seller of custom team uniforms and other sports and athletic apparel. FMJ advised on drafting and negotiating all transaction documentation, completion of due diligence, and coordinating closing.
Represented a lender in a deal to fund the acquisition of business and real estate assets of a leading window installer. This deal included a business acquisition loan, a real estate loan, and a revolving line of credit, as well as some complexity on the real estate front due to lingering title issues.
Represented the buyer in a purchase of a business that sells and markets products on Amazon. FMJ advised on issues surrounding ongoing vendor relationships, along with drafting and negotiating all transaction documentation, completion of due diligence, and coordinating closing.
Represented the buyer in a purchase of a provider of automation solutions and manufactured goods, providing primarily automated assembly machines, prototypes, tooling, piece parts, and other related items. FMJ handled the drafting and negotiating of all transaction documentation and advised on completion of due diligence and closing.
Represented the buyer in the purchase of hydraulic tool and part company. FMJ analyzed and advised on the specific needs this business would have going forward and also handled drafting and negotiating all transaction documentation, completion of due diligence, and closing.
Represented a client in the acquisition of a 16,000 square foot industrial center. The negotiation, due diligence, and closing were all accomplished on an extremely expedited basis to meet client deadlines and the deal was completed in less than three weeks from initial contact.
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