Seller Note: When Does a Banker Generally Want to See One

Why is a banker often more comfortable with a deal when the seller is still financially "on the hook"?

While it might seem like just another layer of debt, a seller note is actually one of the strongest signals of quality a banker can see in a business acquisition.

In this episode, we are breaking down the strategic and technical reasons why bankers frequently request or even require a seller note to move a deal toward approval. We explore how seller financing bridges valuation gaps, the "full standby" rules required for it to count toward a buyer's equity injection, and how it acts as a form of insurance that ensures the seller provides a high-quality transition and training period.

Joined Today by Paul Long

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