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2020 AUGUST NEWSLETTER

Updated: Aug 25


Have you considered selling your business to a Tribal Nation? There are many compelling reasons, and benefits to you, in pursuing this business strategy. We urge you to contact Sage Business Advisors (“Sage”) today to learn more about the promising opportunities of tribal ownership. Please reach out to www.sbatribalpartners.com.

Sage is the nexus between small and medium-sized businesses and Tribal Nations. The primary focus of Sage is to provide merger and acquisition consulting services to Main Street and Middle Market enterprises that wish to be acquired by Tribal Nations. Sage is laser focused on helping tribes create non-gaming income.

During the acquisition process, Sage is often called on by both the seller and the buyer to facilitate the creation of a post-acquisition business plan that leverages the unique competitive advantages of tribal ownership. We thus provide robust post-acquisition consulting services to the newly acquired entity with respect to implementing the new business plan.

When most people think of tribes, they envision gaming. It is true that many tribes across the nation operate successful gaming enterprises. However, even the most successful gaming tribes are striving to diversify their income streams away from casinos. They do not wish to have all of their eggs in one basket and thus be overly reliant upon one source of income.

Sage has been instrumental in assisting tribes in establishing a strategic imperative of non-gaming business income exceeding gaming revenues. Tribes are aggressively moving forward to create a portfolio of companies across a wide range of industries. Tribes are actively looking to acquire businesses to build out their portfolio of non-gaming companies.

Now is the time for business owners to consider selling their company to a Tribal Nation.

As a business owner there are numerous reasons why you should consider selling your company to a Tribal Nation. With our specialized knowledge of tribes and our extensive network of contacts, Sage is uniquely positioned to help you sell your business to a tribe.

Let’s say you are a business owner and you are frustrated that you are having great difficulty in expanding into new markets and lack of capital. Further, let’s say that you are at a point in life where you’d like to cash out your ownership but you wish to remain onboard as management. You desire to continue to manage the company and take the enterprise to new heights predicated upon the expanded markets and unique competitive advantages accruing to tribal ownership.

Many tribes will find this scenario very appealing. Tribes not only wish to acquire a wide variety of businesses but they generally look to retain experienced and successful management.

We at Sage can assist both management and the tribe to establish realistic and achieve enterprise performance goals, key performance indicators and compensation with equity-like compensation for management.

As noted above, tribal ownership of your business brings with it a host of benefits and unique opportunities. One of the most prominent benefits is the Small Business Administration’s 8(a) program and in particular the “Super 8(a)” status of tribes. The tribal status is especially appealing for those business owners who are currently in the 8(a) program but are about to graduate. Selling your business to a tribe opens up the opportunity to continue in the 8(a) program only under the benefits of the tribal flag.

Another major benefit of tribal ownership is exemption from federal and state income taxes. This benefit comes part and parcel with tribal ownership. As such, many businesses have been able to increase their net income by fifty percent (50%) simply by virtue of the tribal ownership. It is important to note that this benefit accrues to the business regardless of where it is located and regardless of who it does business with.

To successfully sell a business and meet the goals of the owners involves a myriad of considerations. Selling to a tribe entails specialized expertise and experience. Sage is uniquely qualified to guide you through the complex legal, regulatory, cultural and business maze related to a tribal purchase.

Contact Sage today to discuss the unique opportunities and benefits of selling your business to a Tribal Nation. You may reach Sage via e-mail or by visiting their website at www.sbatribalpartners.com.


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