I came across an interesting deal that I'd love some advice on when it comes to the structure. Below are the key points...let me know if you need any additional info. I'm going to keep industry and type of business out of it for confidentiality. The SDE here is lower than I was looking for, but the asking price and real estate involve has peaked my interest. It is in an industry that I could plug myself into and scale. I believe CRE is worth more than 50% total purchase price, so know I could do 25yr note with SBA...however, I'm wondering if there's a better way to structure this given the heavy CRE and asset value.
Any ideas how to structure deal outside of SBA? Please keep comments and advice focused on deal structure. Thanks in advance!
-Current asking price of $600k
-SDE previous 3yr avg = $200k
-Industrial warehouse real estate included in asking price; 4k sq ft, on 0.5 acre, built 1979, in fair condition
-Machines and other assets included worth at least $100k FMV
-I have $100-125k cash I'm willing to put towards this as needed
-I currently have no additional income since I decided to pursue self-funded search full-time (just a side note if relevant for alternative lending options)
-Need the owner to stay involved for ~3-6mo to assist with transition, so want some ideas on financial incentives to keep him engaged...earnout maybe if I can do this outside SBA?
Deal structure advice
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