5. Residential Accounts Some buyers place limits on residential accounts. Virtually all buyers require a residential subscriber to own their home. Some buyers require minimum credit scores or that the subscriber have satisfied a minimum upfront payment. In other cases, buyers will forgo these requirements for well-seasoned accounts.
This list is not exhaustive. If you’re selling your company, consider these issues and retain someone who understands the nuances in these requirements to limit surprises at the time of closing.
Eric Pritchard is a partner in Kleinbard Bell & Brecker LLP, based in Philadelphia. The firm focuses on acquisition and succession strategies. This column does not constitute legal advice; contact an attorney well-versed in the field with specific questions. To be considered for the “Catch of the Week,” or for more information on the program, contact Eric Pritchard at: EPritchard@Kleinbard.com, or firstname.lastname@example.org.