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1. I'd typically ask your lawyer or financial person (if you have either) for someone they would recommend. 2. If the owners actually believe in their business
by happyjack 3y ago
1. I'd typically ask your lawyer or financial person (if you have either) for someone they would recommend.
2. If the owners actually believe in their business and think it's not a trend / fluke, they should be willing to play ball with the idea of a seller's note. Big red flag if they won't.
3. 5 is a good number
4. Sure, there are differences for different industries, especially if there is capital or large expenditures, etc. But you have to be able to pay the business back while still looking at growth, expenses, etc. etc. Beware of the "growth" trap and the "endless possibilities." If this business scaled that well or is worth 4x or whatever multiple, and it runs itself why are the owners selling?