Deal Structures

Deal Structures

In SME transactions, there are a multitude of different ways to structure a deal. Buyer and seller going head-to-head on price rarely results in a positive deal outcome, and a good future working relationship (which is vital!).

Guy Davis • 18th Jul 24
What's in the Guide?

In SME transactions, there are a multitude of different ways to structure a deal. Buyer and seller going head-to-head on price rarely results in a positive deal outcome, and a good future working relationship (which is vital!).

While you getting the maximum price for your business is key, there are many different ways to get you to that price. A good understanding of different deal structures puts you in the best position to be able to get a deal done with the right buyer for you.

The purpose of this short guide is to arm you with some basic knowledge of some of the most common deal structures, options and terminology.

So, when you come to sell your own business, you’re in the best position to be able to get a successful deal done with the right buyer.

Contents:

  • Share or Equity sale
  • Asset Sale
  • Seller financing
  • Loan notes
  • Earn outs
  • ‘Cash Free Debt Free’
  • Staged Sale
  • Employee Ownership Trust (EOT) / Management buyout
    (MBO)
  • Merger
  • Valuation and deal terms
  • Your price, my terms. My price, your terms