Equity Rollover with SBA 7(a) Loan - Asset Sale?
Hi - I am looking at a $2M TEV SMB business and want a 10% management equity rollover. Are these limited to just stock sales or an asset sale as well? A stock sale is a non-starter for me as I don't want to be responsible for the legacy business' liabilities (unless there is a work around there). The seller is open to this and we are closing in on a structure that is 10% rollover equity and 15% seller note on top of that, for context. If a stock sale isn't possible, any tips on how to align incentives on a go-forward basis?