I have a funny (not so funny) problem. Together with the seller loan, we have 42% of equity, 58% would be loan from the bank. I think that would be enough, the banks in Finland require 30-40% of capital. For Finnvera 20% would be enough (where we buy the loan guarantee). But now the seller thinks our model is too tight and he will not sell. He does not like the idea, that we put all the precious profits to the loan abbreviations. But what to do? our model is of course to use dividents to pay back the loan. Have you had this problem?
(so the seller thinks we would run the company bankrupt and he would not get his rent money - we cant buy the premises with current equity)
how much do you tell the seller about your financials as a buyer?
by a searcher from Helsinki University of Technology
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Challenge the Seller -- if he doesn't think the business will sustain even flat performance in the near-term as you pay down debt, then the whole deal is riskier than it seems...put the onus back on him a bit.