Whether it’s a stock or bond, or a private company that you’re selling…it’s not necessarily the price that drives a transaction…it’s what you actually keep that really counts. One of my colleagues at CFA, John Hammett, recently wrote a nice piece on using a “seller’s note” to maximize net proceeds of a business sale. He neatly laid out the case that you can earn 10% to 20% greater returns by using a seller’s note as part of the deal structure. It’s worth the read! You can read the article in its entirety here.
Posted by Greg McKinley.