ECONOMICS BEHIND HIGHER PURCHASE PRICE WITH HIGHER SELLER'S DEBT?

What is the economics behind offering a higher purchase price with a higher proportion of the seller's debt in the deal structure to bridge the valuation gap? I understand that the seller's debt can be set up as interest-only for the first few years to improve debt service coverage. It will be great to hear how others have handled this and the reasons for doing so. Thanks in advance for sharing your insights!



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