You’ve Been Served: Buying a $1.3m Process-Serving Company

Yeah, I'll start with just the terms of the deal. Patrick kept 30% of equity. We seller financed mostly the rest of it.

So 600,000 of the deal was seller financed. Patrick kept 30% equity. And myself and another partner brought to the table 100,000, so 50,000 each.

And the buyer has to trust that the seller isn't screwing them over. And so that was the terms that we came to.

And what was the length of time of this seller note? That $600,000 was going to be paid?

Yes, that $600,000 is paid over seven years. One year of which is interest only with an option for a two-year interest only period. And then after that, either a five or six-year amortization period.

Okay. I have to believe – I agree with everything you say about his level of trust in you and yours in him. But I also have to believe that he was willing to accept this deal because he was eager to get on to his next thing. He was – so if this had been a retiring seller –

And all they're doing is facing down the golf course and, you know, open, totally open calendar. They might not have been as amenable, but he's got something else lined up. In fact, that's why he's trying to move on. So in other words, you found an eager seller.

Yeah, I would totally agree with that statement. I found an eager seller. And perhaps this deal would not be amenable to someone that, yeah, just wants to cash out and retire.

But he's younger. He's doing something else. He's not hurting for money at the moment. And he wants to be along for the ride.

And he sees upside as well. And so for those reasons, I believe the deal worked as compared to a... seller that just wants to wants to get out.

Yeah.