I've been working on a deal that's a health/wellness spa franchise in the Bay Area - it’s unique in that the owner has been trying to work with me to do the deal, but she’s not flexible on the purchase price.

It does $500k EBITDA, she opened it in Sept ‘22, and after speaking with a bunch of franchisees, it seems like she’s selling because it takes up more of her time to run than she initially anticipated (she owns a bunch of other franchises and is on the older side).

She initially wanted 5x, non negotiable. She was ok with a $500k seller note, but just this week she came back and said she wants $2.3M cash at close, no seller note. After SBA appraisal (which would likely come in below that) I’d probably need to raise additional equity on top of the SBA loan and I’d end up with 61% ownership.

If you were 25 and badly wanted to get in the game, would you be ok with that ownership given the PG risk?