Typical Deal Structures

Here are a few common deal structures to illustrate how the various financial components work together to comprise the purchase price:

• Scenario 1:
  • 80% cash down
  • 20% earnout – used in lieu of a holdback
• Scenario 2:
  • 60% cash down
  • 20% earnout
  • 20% holdback
• Scenario 3:
  • 50% cash down
  • 20% seller financing at 48 months at 6% interest 
  • 20% earnout
  • 10% holdback
• Scenario 4:
  • 50% cash down
  • 30% third-party financing
  • 20% holdback