Seller Retained Equity Buyout

For anyone following this thread, curious if anyone has personal experience with OSB Capital. This post was inspired by terms they shared verbally, but after a month, have failed to substantiate. A dedicated post to this question is linked here: https://www.searchfunder.com/post/osb-capital-deal-killer-or-resourceful

Hi David, this is a loaded question. It's like any other vocation in life 20% of the people are really good at what they do and 80% of the people, we all wonder how they get out of bed every day. It's no different in the business brokerage world. As somebody who trains the largest business brokerage firm in the world on SBA lending, I can tell you that a very good business broker can indeed help with the transaction tremendously. Conversely a bad business broker with a chip on his shoulder can get in the way and destroy the deal for everybody. Unfortunately, sometimes you don't have the ability to choose who you want to work with if the seller has already chosen a business broker that's going to be problematic. When we do deals, we usually orchestrate the entire deal and just have the business brokers get documents for us for the most part. The good ones that work with us don't even mind because they know we'll take care of it and close it because we have over a 98% closing ratio. It's all about structuring the deal from the beginning and making sure everybody's on the same page. One of the biggest problems I do see with business brokers, especially if they are transactional brokers, is they just stay away from doing more work than they have to. So, when it comes time to discuss the A/R, A/P, WIP, working capital, seller note structure, and costs associated with the business acquisition outside of the loan, a lot of them just become a ghost with no input which can really make and unfair deal for more than one party. I am still licensed as a business broker although I do not work in that capacity anymore. If you have any additional questions and want some blatantly honest feedback, give me a shout, I’d be happy to help in any way i can.