Hi Folks, has anyone structured a deal where they would purchase the business via an SBA but then have a rev share where seller will get paid a fee (not a seller note) for any revenue that continues to be brought in by existing customers above a certain amount (would obviously be capped)? This would not be an earn out by any means, just a means to ensure a retention of existing customer spend.
Trying to understand if this would work with an SBA loan since it is not a seller note but rather a rev share fee arrangement.
Reason this is being proposed by the seller is a) bc it is industry practice and b) it allows me to deduct it from the P&L (lower taxes) vs paying it out of post tax cash flow (which is what happens with a seller note).
All thoughts welcome.
Thanks!
Rev Share and SBA
![](https://55550cf88fb9105859d2-ecc273435fde99d2e690dfef78341117.ssl.cf5.rackcdn.com/img/defaultprofile.png)
by a searcher from Harvard University - Harvard Business School
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
75 views
4 comments
Sign in to see all replies.
Create an account.