Creative Deal Structures for Small Deal

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by a searcher from Northwestern University - Kellogg School of Management
in Chicago, IL, USA

1yr ago

Creative Deal Structures for Small Deal

I’m looking for some ideas on potential creative deal structures for a small deal (under $300k). Company has been on the market for a few months and seller is motivated to sell. In the past I would have gone heavy seller financing but with the new rules going into effect June 1, looking for other creative ideas that will still work. Appreciate it!

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reply by a searcher 1yr ago
from Universidad Internacional del Ecuador in Cuenca, Ecuador

^Matt Atilano‌, for a deal of that size and a motivated seller as you mention, I can think of a couple of options: 1) 100% seller financing while giving the seller some equity in return that you may buy at a later date. 2) If it's a bolt on acquisition, you could offer the seller equity/shares in the combined company. Of course this depends on whether the seller's motivation to sell is to cash out (the deal should have a money exchange) or he just wants out (he'll probably accept deferred payments and/or equity)

reply by a professional 1yr ago
from University at Albany, State University of New York in Delray Beach, FL, USA

^^redacted‌ You can also do a 506b offering and raise the capital that way. If it's a good deal and you have a decent size personal and professional network, that's what I'd recommend.