Deal Structure Suggestions
October 29, 2025
by a searcher in United States
Considering putting in an offer for a software development business. I've spent 10+ years in tech sales world, so feel comfortable in the space but mindful of risks.
Based on what I'm seeing, I think 3x SDE would be fair. However, the owners want to stay involved and while that could be a benefit and last year's #s would support it, prior years indicate that salaries + debt service would result in negative cash flow.
What are some deal structures to consider to minimize cash flow risks?