Deal Structure Ideas
I'm looking for some help structuring a deal I'm considering. The purchase I'm targeting is priced at $400k and I intend to use SBA financing. I have the cash injection and could simply use SBA financing and be done. The seller is open to seller financing up to 45%. The business is relationship-oriented and there is some key-man risk during the transition period if we were to lose customers. If I incorporate some degree of seller financing, won't that note be subordinate to the SBA loan for the full 10-year term? What options do I have to keep the seller engaged to ensure a smooth transition? Consulting agreement or something else?