Paying Royalties on Inventory?

May 28, 2025
by a searcher from Northwestern University - Kellogg School of Management in Chicago, IL, USA
Has anyone structured a deal where they agree to pay the seller a royalty/commission/some percentage of sales of inventory left on-hand during the sale?
-Also, is this allowed with SBA debt?
Asking for a deal where there is a ton of inventory on the books (justified given the business and industry), and about 25% is admittedly slow-moving but required to be held. Instead of paying more upfront I am trying to structure an "inventory earnout" (would structure so it as a seller note not earnout) with the seller. Appreciate any advice and ideas!
from The University of Chicago in Chicago, IL, USA
from Clemson University in Raleigh, NC, USA