I've heard of it but never been asked. I love the insight and thought process of your logic.

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.