Hello all

I am currently exploring a business opportunity where the seller has expressed a willingness to provide a significant portion of the financing (30%). The business exhibits a noteworthy customer concentration of 20%, with a client who share a personal rapport with the seller. Seller has agreed to stay on a management. role to ensure smooth transfer. Wonder how should I structure the seller note ? I would like to tie it it to retention and performance of the account or business in general.

My CPA has been looking into the books, he feels business is priced a bit high ~30k more , I am wondering if I should go back and negotiate the price down and risk the trust relationship with the seller. Seller has even offered to carry even a larger note should SBA 7a falls short. Given the seller's longstanding presence in the community and intimate knowledge of the business, I'm considering the prospect of tapping into their network and connections to fuel the growth of the business—perhaps even incorporating this into the seller note.

There is an intriguing alternative on the table: the potential for a 100% financing arrangement, with the flexibility to choose between an annual balloon payment or a monthly annuity payment structure spread over 120 months.

In light of these considerations, I'm pondering the value of engaging an independent valuation firm. Does the potential benefit outweigh the associated costs?

Appreciate thoughts and comments. Thanks in advance.