Understanding Business Sale Deal Structures
Business sales can be structured in several ways, with each option offering a different balance of price, speed, and risk. The right structure often depends on the seller’s financial goals and preferred closing timeline.
SBA financed deals can support strong purchase prices but typically require more underwriting and a longer closing process. Seller financing can offer flexibility and potentially higher returns, but it also places more risk on the seller.
All cash transactions generally provide the fastest and most certain closing. However, cash buyers may seek a lower purchase price in exchange for providing sellers with greater speed and certainty.
Many transactions ultimately use a combination of SBA financing, cash, seller notes, or earnouts. The highest offer is not always the best offer, making it important to consider the overall deal structure, timing, and risk in addition to the purchase price.
