On searches involving gap equity, where the operator plans to stay with the business long term and not exit with the investors, what are exit strategy options? How have people structured these deals so the investors can exit without a sale of the company?
I assume one option is to assess the enterprise value at that time and buy out the investors?
Interested in hearing about other way to structure a deal like this knowing that the operator plans to stay with the business for a longer term.
Gap Equity Investor Exit Options

by a searcher from California State Polytechnic University - Pomona
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SBA 7a loans are for 10 years, of which time I don't believe equity investors can be removed from the equity portion, but I may be incorrect in that thinking. Doesn't the SBA loan have to be serviced in full first?
Do gap equity investors for self-funded search in which lending is utilized for the main capital portion expect to stay onboard with the investment for 10 years? If so, that is great, but wondering if an option for them to exit from the investment is needed before the 10 year period.