M&A Attorney and/or CPA Question

by a searcher from Salisbury University - Franklin P. Perdue School of Business

Feb 14,2023

For a stock purchase- are seller notes allowed? 

Scenario:
$3.6m purchase price
$1.1m seller note at 4% over 48 months
$2.5m paid to seller at closing

Due to the seller note am I automatically required to do an asset purchase?

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12 comments

professional from New York University

You can do a seller note, just make sure the rate exceeds the AFR.

02/16/2023 | like reply | 0 likes

professional from The Johns Hopkins University

Yes, as mentioned, a seller note is fine. Simply think of it as a source of funding. Happy to discuss if you like, but in any case - best of luck!

02/16/2023 | like reply | 0 likes

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