Seller finance

by a searcher from University of Kent at Canterbury

Jun 08,2022

I’m in the UK looking at a guy and build in a sector mainly made up of micro family businesses. I’m going to focus on seller finance as much as possible, but my board colleagues, accountants and some lenders are very sceptical.
has anyone had success with seller notes and if so how did you approach it and what were the objections / feedback?

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searcher

In my experience Seller financing is certainly understood to be part of the equation - the question is how much ?! Depending on the size of the business (the bigger typically the % accepted would be less) for example a £5m rev business I would normally expect 30% seller financing but a £1m business maybe 50% (they have fewer options to exit or are less transferable). If you are assuming 100% then I would also be skeptical. It might be possible but I would be concerned about the quality of the business. There are exceptions of course

02/11/2023 | like reply | 0 likes

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