::Head Exploding::

• 81% buyout • 19% seller rollover (no PG) • Zero money down • Option to call seller equity after 12 months at original multiple

Someone smart tell me why every deal shouldn’t be structured this way?

Less risk for buyer.

Less risk for lender.

Easier entry point for buyer.

Phased-in 100% buyout.

What am I missing?

No reason to ever do a 100% buyout again.

Save your cash, pay the equity injection from cash flows of the business over 12 months, have massive seller skin in the game, bank lends with less leverage.

Assuming seller will bite and lender will approve, this is eligible and all positive.