Owner doesn’t want to hold paper. Ideas?

by a searcher

1 year ago

Does the SBA require sellers to hold paper? The owner I am working with doesn’t want a seller note. Regardless, I want the owner to have some skin in the game to assure me the business outlook is good. What have folks done in the past to get owners on-board for a seller note in the 10% range? My main concern is being an unattractive buyer if I press this too hard. The broker has told me that 12 buyers have meetings with the owner over the next few weeks. Ideas how to approach the conversation with the owner??

0 likes
238 views
18 comments

lender from Nova Southeastern University

Does the SBA require sellers to hold paper - NO !

1 year ago | like reply | 0 likes

searcher from Massachusetts Institute of Technology - MIT Sloan School of Management

A 5-10 percent note or escrow is in-line with the market, and if it makes you comfortable with the deal, I recommend sticking with it, I wouldn't worry too much about being an "unattractive buyer" or the negotiating tactics that the broker uses. If they don't accept, move on to a deal that works for you.

1 year ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.