Valuation and structuring
How do I structure a deal?
This is where you will need some support from a corporate financier/ M&A accountant. The structure will totally depend on a number of things:
- The cashflow of the business
- Any capital expenditure envisaged over the first couple of years
- How long the business has been on the open market
- The seller’s appetite for accepting a deferred payment plan
- The typical level of cash generation of the business and the ability of the business to repay new debt taken on by the buyer to fund the purchase
- The funding multiple available from a funder who might be keen to back the deal
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