Caution to trade owners on PEG deal promises and outcomes

Advisors warn that PEG deals often involve unmet promises, require owners to retain 10-20% equity for a transition, and that owners should research a PEG's track record and talk to prior sellers before selling.

“They'll buy 100 per cent of the company but offer shares in the company's potential growth with owners. Quite frankly, these deals end with lots of promises being made and not a lot of them being met," adds Borkowski.”

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