LOI advice - Asset light, business services, no seller financing

by a searcher from United States Naval Academy

2 months ago

Does anyone have advice or examples on best approach for structuring an LOI when seller will not entertain seller financing and business is asset light, business/consulting services (low start-up costs)? I am concerned with not having seller financing as a tool to help mitigate risk.

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professional

I often recommend a royalty structure or a contract of sale structure in situations like this. Fix the price and allow the future income drive the repayment as a % of revenue.

2 days ago | like reply | 0 likes

lender from University of Missouri - Columbia

Hi, with SBA you cannot do earnouts as mentioned above but you can do buyer rebates based on certain metrics decided upon by you and seller. If you are in need of SBA financing, please feel free to reach me here or at --@----.com

2 months ago | like reply | 0 likes

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