Great Deal, with no seller note

by a searcher

1 month ago

I am acquiring a HVAC company ($1.8M EBITDA) at a very attractive 3 x multiple but the seller wants an all cash deal. He said he would stay up to 4 years after the sale to run the company but wants no seller note and no equity retained. There are no red flags in the deal and the financials are reviewed.

I can contribute 30% to the purchase price but I'm wondering how the banks would see the deal given that there is no seller note? Do banks do these types of deals? Thank you.

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23 comments

searcher from Michigan State University - The Eli Broad College of Business

Lenders would like to see the seller incentivised but you can always reach out to some lenders and give them a look at the deal

4 weeks ago | like reply | 0 likes

searcher from University of Strathclyde - Strathclyde Business School

Is he someone who you think is critical for the business?

1 month ago | like reply | 0 likes

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