Do you know what the going terms are for seller debt?

by a searcher from Carleton College

Nov 26,2021

I am writing up an LOI for a smallish deal ($3 million enterprise value? … still pinning that down) that would necessarily be heavier than usual on seller debt.  It’s an asset purchase from an ESOP.  I have never proposed seller financing.  What would be typical terms?

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searcher from University of California, Berkeley - Haas School of Business

ESOPs valuations are done yearly and there's normally a healthy control premium (non-control discount) to the tone of 30-40%. Are you certain of % you are acquiring? (all ESOP members should be presented the oppty to redeem or rollover their prorata shares). Are you planning newco to be an ESOP?

05/10/2023 | like reply | 0 likes

searcher from University of Illinois at Urbana-Champaign

^Searchfunder member‌, i can vouch for Hugo's and Kirill's ranges based on very recent tranactions. Don't want to go deeper into deal specifics here; but can discuss some particular features in live call. DM me.

05/10/2023 | like reply | 0 likes

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