Mergers and Acquisitions

with a Letter of Intent

Towards Flexible Deal Structures

Seller Financing

We create flexible arrangements with business owners who are serious about their succession. We provide an open environment for dialogue, so as to educate the stakeholders on various options available to them, enabling a smooth financing process and successful transaction.

Seller Note

Note financing

SELLER PROMISSORY NOTE

The seller provides the buyer with an agreement to repay a percentage of the value over a period of time usually at an interest rate.

Earn-Out

EARN-OUT FINANCING

PERFORMANCE BASED

The seller agrees to a performance based metric by which a percentage of the value is paid, which can either be accretive or dilutive on the payment amount.

Equity Roll-Over

ROLL-OVER FINANCING

STOCK AS PAYMENT

The seller agrees to receive full or part payment in the form of the buyers company stock. The terms of an equity roll-over can be a solution to a deal.

Options Contract

OPTION CONTRACT FINANCING

VARIABLE FORM OF FINANCING

There are many ways to structure an agreement with a seller regarding the time, periods, amount, tranches, rate and premium of proceeds to the seller.

Futures Contract

FUTURES CONTRACT FINANCING

FIXED FORM OF FINANCING

This is a form of contract which can lock in the price of an amount of stock, at a future date by which the contract would mature and expire with conditions attached.

Co-Investment

SELLER CO-INVESTMENT FINANCING

DIRECT SELLER INVESTMENT

A simple but yet creative form of financing to get a deal consummated. As indicated the seller invests directly with the buyer to secure the cash consideration.proceeds.

Get a Deal Done

90% of businesses that are put up for sale don’t sell. That’s the daunting reality. The simple reason why this happens is because the business is unfairly priced and / or the sellers or buyers are not sophisticated enough to go beyond all cash deal structures. This is where we see ourselves as a great alternative for sellers with great companies, but need more creative means to transition from their business.