Use of Seller Financing in M&A
We have often heard the refrain “I owe you – IOU” when we may have either lent or borrowed money. In M&A world, there is an equivalent tool called “seller financing” (also referred to us as “I owe you” – IOU slips) which is often used to get transactions over the finish line. Seller financing becomes an elegant tool for buyers and sellers to bridge the valuation gap to achieve the desired purchase price to consummate a transaction. A quick read into the mechanics of Sellers Financing along with the benefits and considerations of using this elegant tool.