How common is seller financing in a deal?

April 15, 2021
by a searcher from IE Business School in Montreal, QC, Canada
Hey everyone,
I have been looking for data on how common it is to get seller financing in a deal and at what percent of the total entreprise value and approximately what interest rate, any good links or recomendations?
from Babson College in Boston, MA, USA
lastly, note size increases as the variability of earnings increase. Notes are sized to bridge the difference in valuation between the best years earnings, and the average/worst earnings years.
This should show up when you model base/best/worse case scenarios. You’ll need to size the note to ensure you can service your senior debt payments under your worst case scenario.. This means you’ll increase the % of seller debt until you can maintain a 1.5 DSCR under your worse case.
from IE Business School in Seattle, WA, USA