Deal structures for a >97% seller note

searcher profile

July 07, 2022

by a searcher from University of Colorado at Boulder in Lakewood, CO, USA

Does anyone have experience in structuring a deal with a near 100% seller note? What were the terms like?

Background: looking at a very profitable, yet declining, business (sale price >$2.5MM) from a seller who has deep pockets and an appetite for investing/funding entrepreneurs; I only have 3% available for a down payment. Looking to pitch them a deal where they fund the sale. Given my experience in the sector, and ideas for growth, I believe it is at least worth a consideration from them. Thanks.

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Reply by a searcher
in Winston-Salem, NC, USA
With the right operators and long term goal for the business you can pull off a 100% seller finance deal that's a 60% buyout. Had a buddy buyout 60% of a HVAC company doing $5.5M in revenue. The seller financed the whole thing!
commentor profile
Reply by an intermediary
from University of Nevada in Henderson, NV, USA
You can definitely do 100% finance, I would need to know a little bit more about to deal to be able to structure the offer stack. But the goal should be no money out of your pocket and necessarily no money down
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