1. What was the motivation behind the Sloans’ decision to sell Li’l Guy Foods? Are you surprised that so few potential buyers expressed interest in the company? Explain.
2. How common is seller financing in the sale of small companies such as Li’l Guy Foods? How are these deals typically structured?
3. What benefits can Tortilla King expect as a result of buying Li’l Guy Foods?

Christina and David Sloan, third-generation co-owners of Li’l Guy Foods, a family business founded in 1965 in Kansas City, Missouri, that manufactures Mexican foods, recently decided that it was time to sell because the 30-employee company was facing financial pressure from rising food, energy, and packaging costs. The cost of corn, a major ingredient in the company’s product line, had increased by 150 percent in just a few months, eradicating the savings the Sloans had experienced by cutting out one production shift.