Any deal structure experts?

searcher profile

December 27, 2023

by a searcher from University of California, Berkeley in San Francisco Bay Area, CA, USA

We are looking to submit a few proposals for a deal and would love to get some perspective on creative ways of structuring multiple options for the same deal. We are currently using equity and debt financing along with seller rollover equity but would like to include other creative hooks. Looking forward to connecting with the deal gurus here.

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commentor profile
Reply by a searcher
in Chicago, IL, USA
Hi there, it really depends on the rapport you've built (if any) and deeply understanding the motivations of the Seller. Is it a $$$ motivation, does their legacy matter, etc.For instance, the Seller would presumably be over the age of 55, so you could offer part of their consideration to come in the form of maxing out their 401k + catch up contributions. This becomes a write off for you and a tax-advantaged solution for them. Happy to discuss more, we use about dozen different tactics for creative deal structuring.
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
Happy to help. Over 35 years as M&A Intermediary I have represented many sellers and buyers. No two deals are structured the same way, including the ones that are all cash. Few times, representing the seller, I have closed deals where I recommended lower price than the buyer offered (no typo here). New creative structures helped achieve multiple objectives of seller and buyer. In each case, both parties came out ahead.
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