Selling Financing: How to Best Navigate The Complex World of Financing With Sarah Grossman

Jennifer and Eric talk with Sarah Grossman, a CBI Principal at BayState Business Brokers. Sarah has worked with both Jennifer and Eric on a number of client projects. She has over 15 years of experience and is very knowledgeable about her field and is excited to share with you how businesses get bought and sold. On this week's podcast, you'll learn the benefits of a seller note, why this can be a good thing for both the buyer and seller and how it can be used to mitigate your tax liabilities with a seller note.

 

Key Points

[1:40] What is seller financing and how is it used in a deal?

[4:15] What happens if a buyer is unwilling to do a personal guarantee on a seller note?

[6:30] How does Sarah prepare her sellers for a seller note or even approach them about the benefits of one?

[9:10] What are some of the risks of having a seller note? 

[10:25] There are ways to creatively structure the note so that both sides up being happy with the terms.

[10:35] Would a buyer care if their seller is doing seller financing?

[13:25] Sarah shares an example of how seller financing works in real time.

[15:35] What types of due diligence should a seller be doing on the buyer?

[20:00] The seller note is just a good option to have for both the seller and buyer to get the deal done.

[21:35] Sarah shares how you can mitigate some of your tax liabilities with a seller note.

[24:00] Sarah shares some additional examples of how people can leverage and beneficially use seller financing.

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